Study On Equity Incentive Of Milord Real Estate

Modern enterprise system in the two rights separation has given rise to agency problems, and in order to solve the problem of agent, equity incentive mechanism arises at the historic moment. Equity incentive is different from the short-term incentive means such as compensation, it belongs to a kind of long-term incentive means, through it can make the enterprise managers and managers in the company’s business objectives, prevent managers from myopia behavior effectively, reduce the agency cost and solve the problem of agency effectively. In the 1980 s, equity incentive became prevalent in western developed countries listed companies, and achieved good effect. Until 2006 the measures for the administration of the listed company equity incentive, equity incentive system in our country began to be standardized. More and more listed companies started trying to launch equity incentive plan. But the result is several glad several sorrow. Some companies benefit, therefore, to effectively solve the problem of agency, further enhance the performance level, enterprise scale expands unceasingly, rising status in the industry. But there are also a significant part of the enterprise’s equity incentive didn’t insist in the end, halfway died due to various reasons, incentive can’t fully play. Milord Real Estate company has been described as a dark horse in the real estate enterprises, is expected to be a successful real estate enterprises.It has high hopes for the equity incentive mechanism, to launch equity incentive scheme for three times, but the results of each time were disappointing. Therefore, this article selects Milord Real Estate company equity incentive as the research object.This paper is divided into five parts. The first part is the introduction part of the article.Briefly describes the research background of article and the significance of the topic and the writing technique. The second part introduces the related concept definition of equity incentive and models, and introduces four kinds of equity incentive theory. The third part introduces Milord Real Estate company equity incentive. First of all, analyzes the motivation of the equity incentive, then analysis the specific content of the equity incentive plan. The fourth part is on the basis of before chapters, points out the problems that the enterprise in the process of the implementation of equity incentive, then from the scheme in the design and implementation process is analyzed, finding the cause of the problem. Through the analysis of the problems and reasons, puts forward the corresponding improvement suggestions in the last part.So far there are most research about the equity incentive that the listed company as a whole as the research object, few studies about individual enterprises, this article selects Milord Real Estate company that launch equity incentive scheme many times as the research object, gain experience through the analysis of the enterprise case, expect be helpful to enterprises when they lunch equity incentive in the future.