A Design Of The Stock-right Incentive Plan Of The SCJT Academe

Stock-right incentive plan, a common in use instrument of distribution and incentive, becomes widely used in Chinese companies. In the process of state-owned economy retreating from the competitive fields, we should seize the opportunity to mend the retreating paces by determining the reasonable extent and suitable ways of retreat. During the retreating period of SOEs, we should explore on establishing the effective company employee inventive mechanism, especially for the managerial and cadre staff, and also realize the stock-right diversification and favorable management mechanism. They are the key issues to the success of the reform and development of SOEs. By researching on the definition and basic function of stock-right incentive and discussing its application, the author take the SCJT Design Institute as an example and design an employee stock ownership plans and executive stock options. At the end of this paper, based on the practice in SCJT Design Institute program, the author put forward some advices for the companies that are applying stock-right incentive. Finally, the author hopes this paper can be used for reference for the companies to incent their employees, especially for the managerial and technical cadre staff in a scientific and reasonable manner.