An Implementation And Effectiveness Research Of Manager Encouragement Scheme Of The Stock Option From R Company

Since Chinese economic reform,Private economy,as an important part of market economy,has made a major contribution towards the economic development of China.With the continuous expansion of modern enterprise,in order to meet the demand of the development of private enterprises and enhance the core competitiveness of enterprises,professional managers have been gradually introduced into the private enterprises as part of the development.Currently,professional managers have been playing an increasingly important role in the management of private enterprise.The Equity incentive plan,which regarded as a type of new incentive,is combining the interests of managers and shareholders to effective ease the conflict of interests existed in the relationship of two rights separation,.This will not only reduce the cost of principal-agent,but will also result in a unprecedentedly high enthusiasm from professional managers,.which will achieve increase in value of the enterprise indirectly.Such incentive plan is undoubtedly the best plan for business owners as it combines the interests of both parties concerned.Based on the literature research and the analysis of equity incentive schemes of the company by which the author is employed,Combining theory with practice,measurement of effectiveness of the equity incentive in three dimensions has been designed in this paper.In accordance with the analysis results of the measurement,suitable model of effective equity incentive has been built for the development of the R company,at the same time relevant strategies have also been put forward.