Executives Of Listed Companies In China Equity Incentive

The main goal of executive equity incentive in the listed companies is to make the interests of executives and those of shareholders accord and to incentivize executives to manximize shareholder's wealth and listed companies'value.Equity incentive in western developed countries played an active role in economic growth over the last decades. At the present time, the executive equity incentive is not quite mature in our country. Therefore, it is necessary and important to research executive equity incentive in China in light of the experience of developed countries, and then to apply the achievements to the listed companies in China.The paper consists of five chapters. Chapter I reviews the theoretic literature. Chapter II introduces the relevant theory of equity incentive, including Principal-Agent Theory, Human Capital Theory, Property Right Theory and Incentive Theory of Management. All these theories are the important theoretical basis of the paper. Chapter III describes the current state of executive equity incentive in the listed companies in China and analyses the existing problems. Chapter IV discusses the selection of equity incentive models. Chapter V provides the measures to improve the executive equity incentive mechanism of the listed companies in China.