Research On Vanke Equity Incentive Problem

Equity incentive as a long-term incentive mechanism to stabilize seniormanagers and key technicians is regarded as an effective tool.It enables management to work h ard to achieve"maximum shareholdervalue".More and more listed companies in our country choose to use equityincentive to attract and retain good employees,and use th is long-term incentiveform of"make employees become shareholders"to stimulate th eir enthusiasmand motivation to work more actively Effectively avoid management's possibleshort-term behavior strategy and the related risks.Shenzhen Vanke Company is the first listed company to implement equityincenti ve in China.It is of some significance to study its equity incentive plan.In2006,the fir st time to implement theequity incentive program,Vankefailed to meet the performan ce indicators.In 2010,when it comes to the second equity incentive plan,although all the performance indicators had been reached,but it results to a serious departure of executives.It can be seen that it is not an effective way to implement equityincentive.How to design an equity incentive plan that is suitable for the listedcompanies in our c ountry to run effectively is very important.Vanke concludedthe exercise of the schem e in early 2016.Accordingto the introduction of the basic theory,function and development ofeq uity incentive system,combined with the analysis of Vanke equity incentivecases,this article will make an in-depth analysis of Vanke's equity incentive planthrough all the data and results of Vanke's attempt to equity incentive in the pastdecade Design,inclu dingexercise conditions,exercise price and other aspects,from a theoretical and practi cal point of view,the study of listed companies to improve the design of equity incent iveprograms;and through comparative research Vanke's two equity incentiveprogram s,Clarify Vanke's equity incentive system and existing problems,andthen explain ho w to design and improve the equity incentive plan under thenational conditions of our country:for example,adopt diversified stock strategyand equity incentive combinatio n,formulate appropriate performance indicatorsof equity incentive,How to improve t he implementation process of the programand how to perfect the macroeconomic envi ronment so that the equity incentivemechanism can play a better role,Research,both equity incentive system VankeEstablish and improve the offer,but also provide a refe rence for the design ofother types of equity incentives.