Research In Stockholder's Rights Drive Of China Construction Water And Environmental Protection Co.,Ltd

At present, only a little non-listed State Owned Enterprises (SOE) are seeking the methods of Stockholder's rights drive and the essays and research about this title are rare as well. In my paper, taking the company:China Construction Water and Environmental Protection Co., Ltd (CCWEP) as an example to compare and analyze different methods of Stockholder's rights drive such as Stock Option,Restricted Shares, Stock appreciation right and Virtual Stock to have a result that Stock Option is the best way for CCWEP because the drive's cost is low and does not affect the original capital structure, can avoid the state-owned assets lost effectively and lower press of investment and risk can be controlled easily.This paper aims to demonstrate through researchto provide a reasonable Stockholder's rights drive for CCWEP, that is to grant incentive object for a certain amount of shares through stock options, the symbol of the incentive object purchase shares at 30% of the current share price. Shareholders only have dividend rights. The stock lock set for 3 years. When the period of lock is expired and the goal of enterprises and individuals to be achieved, the shareholders can exercise. The annual sale amount shall not exceed 1/3 of the total shares of stock,in order to reduce the risk of enterprise funds, to ensure the stability of personnel, to achieve long-term incentive effect.Through the study, we can deeply feel that,if the premise of ensuring the status of state-owned holding, proper use of equity incentives, will be promoting state-owned enterprises to break through the traditional governance structure, the realization of state-owned assets value, an effective way to improve the competitiveness of state-owned enterprises and creativity.