Explore And Study On Enterprise Phantom Stock Option's Incentive Model Analysis

The separation of ownership and control rights result in principal-agent relationship. Based on the relationship of principal-agent, The enterprise owners incentive effectively the business managers that it becomes the core problem in resolving the agent cost. It becomes the key how companies build a effective inventive mechanism that it makes the managers' achievement match the company's benefit well. Because the traditional salary system such as the yearly salary system can't produce the long-term incentive, it is easy to induce business managers only to pay great attention enterprise's short-term incentive, but neglect enterprise's long-term development. Although the incentive mechanism of traditional stock option makes business managers pay attention to long-term development and avoiding its short-term behavior in the certain extent, but it also causes business managers to depart their effort from enterprise value because stock price of stock market fluctuates and the origin of stock. Therefore, it urges to design a scientific and effective incentive mechanism to business managers.Based on the "Propose the question-analysis question-solves the problem" logic sequence, this paper adopts research methods such as the standard research, theory and case research and so on. It divides six parts to write.Chapter one:Foreword, it proposes the background of selecting topic and the significance of research, and makes a brief summary on the domestic and foreign hypothesized stock option and the research results about EVA,and it simultaneously proposes that unifies the phantom stock option and the relative EVA achievement appraisal system,research methods, its fundamental research framework.Chapter two:in this part, it mainly introduces the based theory of phantom stock option based on the perspective of the relative EVA.First,it introduces the based conception of phantom stock and its character, phantom stock integrant parts.Afterword, it introduces EVA theory system and EVA salary incentive system.it briefly analysis the conception of EVA and the enterprise adjusts of financial reporting's reconciliation item and the EVA theory system including evaluating indicator, the management system, the incentive system and the theory system "4 M's" and proposes this paper to design the incentive model mainly depending on the evaluating indicator and the incentive system; Then it detailly introduces the EVA salary incentive system, including the western enterprise incentive system such as dividend plan and dividend bank.Finally, this paper discusses the foundation of incentive theory Including principal-agent theory, human capital theory, the incentive theory and relative EVA achievement performance theory.Chapter three, in this part, it first analyzes existing salary incentive model mechanism, including the limitation of the incentive model mechanism of yearly salary system, traditional stock option and EVA driving pattern. Afterword, it introduces overseas enterprises' success experience such as the US, the Sweden about using the incentive mechanism of the stock option or the EVA,and detailly introduces the traditional stock option success example of US IBM Corporation and Sweden Iraq Likes Company implementing the stock option based the relative EVA. Finally, unifying our country national condition and implementing success experience Of the overseas enterprises' incentive mechanism,it proposes five points which our country Enterprises worth studying including displaying completely human capital function, reforming the incentive mechanism, reorganizing the organizational structure and Consummating the government structure, constructing enterprise outstanding culture and establishing modern enterprise distribution system and so on.Chapter four, this part introduces particularly the incentive model design about the phantom stock option and the relative EVA achievement appraisal theory. First, it analyses this model's design's principle and logic which is followed to and then makes this model's overall frame; Afterward, it particularly introduces the superiority of this model relative to the tradition salary model and the sole model design. Then it makes a qualitative and quota analysis about the incentive model's essential factor:Awarded the object, the award opportunity, the incentive fund origin, the internal price of phantom stock, the management of stock price execution. In this model design, it considers the incentive of the enterprise business manager's short-term and the long-term incentive's union, it is able to unify the business manager's achievement growing with the increasing wealth of the enterprise shareholder and demonstrates the operator's real level of effort; introducing the thought of the relative EVA achievement appraisal makes it can effectively reject the influence of the stock secondary market noise, comparing the traditional salary drive system and the sole option drive pattern, it is able to objectively reflect business manager achievement.In the final part, it introduces the coordinated sets of measures and the suggested policy the company interior and the exterior need take when the incentive is taken.Chapter five:it is application to the incentive model which is designed in the fourth part. In order to exam the scientific of the incentive mechanism phantom stock option basing on the relative EVA.the paper proposes the system design mentality and the concretely design proposal in the Y Corporation which is listed basing on the feasibility analysis about the incentive model in the company after making a summary analysis about its background and the present incentive situation about the business managers and finally it appraises the design proposal. Chapter six:it is research conclusion, basing on the full text research it proposes certain conclusions, simultaneously pointes out the research insufficiency.