A Comparative Study On The Incentive Design Motivation Of Poly Real Estate And Vanke Group

Equity incentive is a kind of long-term incentive mechanism,it is through the motivate managers and to give some of its shareholders,managers and companies together to share the profits and risks,so as to make the enterprise to achieve long-term development goal ultimately maximize interests.So that enterprises achieve long-term development goals and achieve maximum benefits.China's market economy has developed rapidly in recent decades,and equity incentive has been widely used in Chinese enterprises.Issued by the relevant departments in 2006 the first of our country listed company equity incentive has guiding significance to the document,the listed company equity incentive management method(trial)",this is seen as the beginning of the reform of equity in our country.During 2006 to 2008,the securities and futures commission and other relevant departments have issued the state holding listed companies(domestic)trial measures for the implementation of equity incentive,such laws and regulations,these rules for the equity incentive system of state-owned enterprises and executive compensation management system for the various regulations and restrictions.Enterprises with different property rights are faced with different restrictions and regulations when formulating and launching equity incentive.This article chose two outstanding enterprises in real estate industry-Poly real estate and Vanke group of private enterprises,state-owned enterprises with state-owned enterprises and private enterprises as an example,this paper compares and analyzes to analysis the different nature of property right of enterprise in the motivation of designing the equity incentive plan what is the difference.The conclusion of this paper is that the property right property can influence the design motivation of enterprise equity incentive.Design equity incentive program state-owned enterprises due to the limitation of manyaspects and supervision and worried about the loss of state-owned assets and so on,and then allowed to exercise conditions set should be simple and easy to achieve,the equity incentive schemes tend to welfare.In contrast to the listed private enterprises,the equity incentive scheme is more practical and incentive,and the incentive effect is more obvious.This can't be ignored when we study the equity incentive scheme of enterprises.In order to effectively promote the marketization process of state-owned enterprises,this paper suggests that the supervision department should minimize the excessive restriction and intervention on the equity incentive of state-owned enterprises.