The Research Of Non-Listed Companies' Equity Incentives

With the improvement of modern enterprise system, the requirements of enterprise development, and the needs of talented person, the equity incentives are increasingly being introduced into China's Listed Companies as an effective incentives means. Such incentives will effectively combine the short-term with long-term business interests and owners ' interests with employees', which make enterprise to be longer, with stable development.We need to note that, compared with the listed companies, the number of non-listed companies is more than listed companies. And the incentives means of non-listed companies is more traditional than the listed company,that is mainly salary incentives and welfare incentives, the effect of which can not be compared with equity incentives. It is difficult to retain and attract talented people with only salary incentives and welfare incentives for non-listed companies. Therefore, non-listed companies need the corresponding equity incentive plan, which can keep a dominant position inthe competition of talented people requirement in a long-term development.This paper is based on a starting point, the non-listed company' s equity incentive will be in research and discussion.The type and model of equity incentive are summarized and compared from the relevant basic theory and research status of incentive stock options in this paper. Thereafter, further induction of equity Incentive means in non-listed company,and analysis of model choice and factors are in this paper. The characteristics and risks of the equity value of non-listed companies are summarized. There are many contrasts between the listed company and non-listed company, including the model of equity Incentive,Incentive target, Incentives, equity, Sources of funds, exercise price, tax incentives, legal norms and Regulatory authorities. In this paper, the introduction of non-listed companies CNFC company as an example, the deep analysis will be given in the aspect of company's corporate circumstances, industry conditions, prospects, strategic objectives, and current incentives to find out the current incentives,especially the lack of equity incentives and the negative effects companies and employees. Also,according to the company's own development requirements and the group's request, try to introduce adjustment programs for the current equity incentive plan.Through the study of listed companies and non-listed companies, and an analysis of the case, we conclude that equity incentive used in the non-listed company is feasible and effective. However, there are differences in the implementation between the listed companies and the non-listed companies.When designing the plan of equity incentive, the companies need to fully consider the actual situation of the enterprises, and to select and adapt equity incentive model adapting to the business. In addition,equity incentives of non-listed companies can make up for the shortcomings of traditional pay incentives and corporate welfare incentives.