The Study On Equity Incentive Application Of Real Estate Listed Company

The promotion of Share-merger Reform along with the New "Company Law" laid an important legal foundation for equity option incentive. With the domestic and foreign equity incentive theory of practice and related system continued to deepen and perfect the implementation of equity-based incentives the A-share listed companies increased equity-based incentives to become an important aspect of corporate governance. As a long-term incentive mechanism of our country listed company, equity incentive is helpful to solve the agency problem between shareholders and operators, perform the consistence between ownership and controlling power, and conquer the short-term actions of managers to pay more attention to long-term sustaining development.This paper will focus on the application of the equity incentive of real estate listed companies through case studies. The reason why we choose this industry is that, on one hand, the real estate and manufacturing are both the dominant fields of equity incentive, on the other hand, the real estate industry in the national economy is important and specific, and also in strong state regulation, which make the real estate industry full of more intense competition and enormous challenges. Thus, it is of more practical value and practical significance to study the incentives especially stock incentive of this industry.This paper firstly defines the concept of the real estate industry, detailed analyze the equity incentive status of the listed companies in the real estate, then discusses equity incentive programs characteristics of the real estate listed companies from the incentive object, grant number, exercise price, exercise period.After that, we pay more attention in analyzing an typical case of the listed companies of the real estate industry-Shenzhen Ye A.At last, we found that the implementation result of this case is not so satisfied, and at the same time we pose the questions stills existed.(1)The performance evaluation system of the equity incentive program is imperfect t, such as evaluation index is not systematic, requirement is too low; the calculation method id confused.(2)The equity incentive transferee price is too low, involving the loss of state assets. (3)The distribution of the stock incentive is unreasonable, which results in a larger gap between the core general management and the other member of the management. (4)The interests of the whole shareholders is invaded. (5)The incentive process is not standardized, there are many policies and regulations in contradiction with the existing regulation.The suggestions are as follows,(1)Improve the scientific performance evaluation system. In addition to select commonly used financial indicators, we should also add some other auxiliary assessment indicators, such as the enterprise market evaluation indicators, business development capacity indicators, solvency indicators, profitability indicators and so on. (2)Determine a more reasonable price, we can learn from Hong Kong and the United States way, which chooses the "option grant date" as the exercise price point. (3)Determine a reasonable amount of equity incentives, set the number of stock incentive according to the actual situation of the company in order to achieve the best incentive effect. (4)Increase the awareness of the stock incentive risk by obtaining the premium payable and risk margin from restricted stock. (5)Improve the corporate governance structure to address internal control issues, we suggest to establish tripartite expert scientific governance in the company.