Research On Incentive Mechanism Of Listing Corporation Equity

With the continuous development of Chinese modern enterprise system, pay scales of mangers transfer gradually from system mostly consisting of salary and bonus to the incentive plans mainly based on stock options. The improvement of the incentive plan will effectively accelerate the formation of the common interests structure shared by the capital owners and workers, push the establishment of the innovation mechanism by enterprises continually and strongly enhance the core competitiveness of enterprises, which having significant impacts to protect the legal right of investors.To begin with, this article explains clearly about the theory and effects of the incentive plan, indicating gains and losses of the available models. Secondly, It shows the progresses and current state of promoting incentive plan by Chinese public companies under current Chinese economic circumstance, and analyzes the existing problems. Thirdly, this thesis takes CITIC Security, which was the first one to apply incentive plans among Chinese security companies as an example to demonstrate effects carried out by the plans and how those effects emerge. Combined with current economic situation, shortages from promoting progress of CITIC Security incentive plans would give us curtain inspirations as well. In the end, this thesis offers political suggestions for the development of domestic public companies’ stock incentive plan, including improving the public companies information disclosure system, providing well-established legal environment and building the effective internal supervision mechanism.