Case Study On Mid-and-Long Term Incentive Of A Construction Group Executives

Since2014, the world’s financial pattern has changed, the developed countries in Europe and America’s economy is in slow recovery, while emerging economies such as China appears a sign of slow development after experienced a period of rapid development, Especially small and medium-sized private enterprises are facing a series of external and internal problems such as the fierce competition, industry transformation, talent shortage, high cost and etc. in the condition of market which is relatively weak.Executives, as the core managers in company, who hold relatively sufficient resources, has a professional background and rich experience, are proficient in the management and know how to lead a team, they are the key talents who are to help enterprises break through, seek new development and create greater efficiency. How to effectively motivate executives so as to make them to share weal and woe with company and together hand in hand to create success, are the answers which currently the most small and medium-sized enterprises are looking for.In this paper. A construction group is a small and medium-sized private architectural decoration enterprises which is mainly engaged in public decoration. A construction group is now in a critical period of the three party forces that are the company’s main business, up and down the industrial chain, and the capital operation, it has a relatively large scale after10years’development. Hence, top managements’job enthusiasm and stability is very important for the enterprise. However, we found the company is facing serious deficit in management, motivation, and assessment through the investigation the current situation of executives, in order to solve the problems, we first identify the specific reasons after analyzed the case, then study on the basis theory of motivation, meanwhile learn the medium and long term incentive methods from the Chinese and foreign executives. Finally tailored design the executive equity incentive scheme and the corresponding exit mechanism based on the actual situation of A construction group, at the same time perfect the performance management system, combine with the equity incentive scheme, performance exists motivation, incentive exists restrictive so as to promote the sustained and steady development of A construction group. I hope that this article is to provide the corresponding reference in the aspect of executive incentive and performance management system construction for small and medium-sized private enterprises which in the development bottlenecks.