Research On The Application Of Phantom Stock System In Construction Project

Based on the current situation of a central enterprise which has high value and low profit,this research has solved the following problems:By extensively analyzing the relevant literature and studying the existant project management system,combined with authors’ years’ working experience,this paper proposes a phantom stock stimulation system for real estate project management.The main idea of the mechanism is to rely on the stock equity incentive and restriction system to stimulate the project team to work diligently and to realize excess profits.The company would firstly divide the excess and basic profits according to the stock share and project team would then allocate the surplus profits according to their relevant shares,achieving win-win solution between enterprise and project team.The company has not mature practices,although there are a lot of relevant studies in the industry,but because it is not consistent with the corporate culture of the company,it cannot be directly referenced and implemented.Through interviews with experts and literature review,this paper identifies the critical factors for the application of phantom stock system in a pilot project by the central enterprise under certain corporate culture background,including determination of basic profit,team equity allocation,individual equity allocation,capital payment,cash dividends,accountability and quantitative indicators.It then proposes a preliminary plan for the application of phantom stock system and uses it on a sample which is composed of twenty projects completed by one certain enterprise.Project earnings estimates and loss project accountabilities are then calculated separately,and are further compared with the current responsibility budget systems of the enterprise,which has proven the advantage of this method.Then,based on the opinions and suggestions collected from company leaders,project managers and employees,the proposed system further optimizes the index system and forms an applicable phantom stock system.The proposed system has been applied in a real estate project in Sanhe city,He Bei province.Results show that under this system: the enthusiasm of the project team has been improved significantly;targets concerning project schedule,quality and safety have all achieved or surpassed the pre-set standard;project profit rate has far exceeded the target,achieving win-win between enterprise and individuals.The pilot of the system has also helped identify some new problems and shortcomings and put forward corresponding improvement measures.The prosed phantom stock system is proposed by the project team from a central enterprise and receives recognitions from company management team.It’s also a successful bottom-up innovation in the project management.The application process and results of the system will provide reference for the exploration of reform of phantom stock system,internal contract system and joint-stock system in the future.