Research On The Design Of Stock Incentive Scheme For Listed Companies

Equity incentive as a stable enterprise senior management personnel and the main technical staff of the cycle of a long period of motivation, people are seen as an effective tool to eliminate the principal-agent problem. Because it can improve the effect of internal governance, so that the interests of management and shareholders of convergence, and promote the management to achieve the maximization of shareholder value and work hard.Shenzhen Vanke Limited by Share Ltd is the first listing Corporation to implement equity incentive in China, the study of its equity incentive program has a certain representative. Vanke in 2006 for the first time the implementation of equity incentive plan, but because did not reach the performance indicators and void, 2010 implementation second equity incentive plan, although performance indexes all reach, but in the implementation process has experienced serious executive turnover events. Visible, not the implementation of equity incentive will achieve the desired effect, how to design a suitable for China’s listing Corporation can effectively run the equity incentive program is very important. Vanke the scheme will in early 2016 end exercise, combined with exercise process, can provide experience and lessons for the again in the future implementation of the scheme.This paper uses the method of case study. Through nearly a decade of equity incentive to all data and results, in-depth analysis of Vanke company equity incentive program design, including the source of stock, incentive mode, exercise condition,and through comparing the two different scheme to derive suitable for Vanke improvement measures and suggestions. Then from special to general, analysis of Vanke case enlightenment to China’s equity incentive that for some in China’s listed companies equity incentive plan of improvement suggestions. For example, the use of diversified equity incentive forms, the determination of the reasonable distribution of the object and the proportion, according to the adjustment of fluctuations in the market prices and the introduction of the conditions for the exercise of industry comparison index and awarded shares exercise multiplier method, hope can provide reference to other company’s equity incentive plan.