The Research On Application Of WK Company’s Equity Incentive Mode

With market economy developed rapidly, managers often deviate from the shareholders’ interests when they only focus on their owns’, which makes the enterprise’s management and ownership cannot be balanced, so equity incentive produced as a long-term incentive and constraint system, which could not only reduce the principal-agent cost from two rights separation, but also improve enterprise’s business performance effectively. In developed countries, equity incentive favored by more and more listed companies after a long time of practice. In our country, equity incentive started relatively later, and the researches and the system of equity incentive are not perfect, which lead to the development of equity incentive is relatively slow.Accounting standards for enterprises No.11 which introduced on January1, 2007, made the equity incentive system towards a new height in our country, and redefined accounting treatment. However, listed companies share of the positive effect which is taken equity incentive, its risks are continuously emerging in the process of accounting treatment at the same time, and that caused accounting circles more and more attention and discussion about it.This paper start from the perspective of share-based payment accounting standards, Combined with the related theoretical basis and the summary of equity incentive mode, from the perspective of equity incentive’s system background,to analysis the listed company equity incentive’s implement status. In view of WK company two rounds of equity incentive schemes, the research through its implementation background, the main contents of mode selection, scheme, accounting and economic consequences, this paper compare and evaluate the two rounds of incentive scheme. Finally, this paper summarized the conclusions of the research, and on the basis to offer some reasonable proposals for the short of share-based payment rules of simplification and blurred, which in order to make the equity incentive related accounting system be perfect; At the same time, this paper can offer some instructional proposals for the design of equity incentive plan through a contrastive analysis of the two rounds of incentive schemes to the WK company.