The Study Of Chinese Enterprises' Stock Ownership Incentive Institution

Stock ownership incentive has long history of development,on which many studies have been conducted abroad.However,the stock incentive system in China starts relatively late,the researches,rules and policies on the relevant aspects are not perfect,certain problems still exist in specific application of the enterprises.According to the results of data compilation in wind database,1997 stock incentive plans have been put forward in the 11 years between 2006 to 2016,but among which 436 plans have been stopped,failed or postponed,which take about one-fifth of the total.As a long-term incentive plan,stock incentive system could efficiently reduce the agency cost and monitoring cost in principal-agent theory,arouse staff's working enthusiasm,and promote the development and expanding of the company.Therefore,it is quite necessary for the study on stock incentive system and plan design in our country.The incentive system in HUAWEI INVESTMENT & HOLDING is relatively perfect and successful;this paper analyzes the implementation process,background and implementation effect of its incentive system,analyzes the prompting factors in its incentive plan,analyzes and evaluates the incentive system from the views of the integral development of stock incentive in our country.This study enables the readers to understand the advantages and disadvantages of stock incentive system,is very helpful to the stock ownership incentive development and the relevant researches,and also is beneficial to the perfection of stock ownership incentive research system in China.This paper first analyzes the status of stock ownership incentive in our country,analyzes all the incentive elements in the incentive plan one by one,and finds out the existing problems in the present incentive plan.Then,taking the stock ownership incentive case of HUAWEI INVESTMENT & HOLDING as studying object,this paper analyzes the incentive model and the concrete manifestations of the five incentive elements which are incentive object,incentive condition,authorized price,stock purchase pattern and stock source in different stages of the incentive plan to come out with results comparison before and after the incentive plan implementation in each stage.What's more,the efficiency of the stock incentive system of HUAWEI is analyzed.On the one hand,the stock incentive implementation of HUAWEI is analyzed on the basis of the three major theories on stock incentive;on the other hand,the contrastive analysis is conducted combing with each annual financial index of HUAWEI,the average financial figures of communication equipment manufacturing industry and the financial figures of ZTE from the same industry.This paper integrates relevant literature,correlation theories on stock incentive and related documents and news reports about stock incentive in HUAWEI,through the understanding of the course and the analysis of each incentive elements of stock incentive in HUAWEI,and combines with the contrastive analysis of each financial index,the following conclusions are drawn: Firstly,the stock incentive policy of HUAWEI is able to adapt to the environment at that moment,which is also has a strong sense of purpose;Secondly,the incentive objects of stock incentive in HUAWEI have a wide coverage;Thirdly,the internal equity distribution of HUAWEI has fairness.According to the internal equity distribution policy and a series of evaluation criteria to decide the equity distribution qualification and quantity of each employee;Fourthly,the stock incentive policy and economic development strategy of HUAWEI both supplement each other;Fifthly,during the implementation process of stock incentive in HUAWEI,problems still exist in repurchase price and TUP implementation cycle.Through the analysis of stock incentive of HUAWEI,combining with the status of stock ownership incentive in china's enterprises,this paper put forward optimization suggestions on stock incentive system and stock incentive plan,which could provide help for other enterprises on the making of stock incentive plans,and is also helpful to the optimizing and perfecting of relevant rules and regulations on stock incentive in our country.