A Study On Motivation And Effect Of Equity Incentive Scheme From The Perspective Of Corporate Control

As a long-term incentive mechanism for core talents, Equity incentive can improve the enterprises’ performance, and reduce the agency cost. This paper, we compared equity incentive programs from different property enterprises in the same industry, and try to clarify the difference of equity incentive motivation and effect between private listed companies and state-owned enterprises. The study indicates that, because of strict policy regulation from State-owned Assets Supervision and Administration Commission and other government agencies, state-owned enterprises usually face the problems that lack of the motivation and insider-control. Therefore, the design of the equity incentive programs in state-owned enterprises tends to welfare purposes, and the results are poor. By contrast, the equity incentive program of private listed companies usually designed more reasonable, and tend to incentive-style with fairly good results. The research on equity incentive of the quoted companies, we should pay attention to the differences in property rights. Administration, meanwhile, should reduce the intervention in the equity incentive and promote market-oriented transformation of salary mechanism of state-owned enterprises.