Unlisted Private Company Equity Incentive Model Design Study

The enterprise shall establish a clear property rights, scientific management as the characteristics of the modern enterprise industry system, and the effective enterprise incentive-restraint mechanism is one important aspects. Equity-incentives as long-term incentive methods, the managers, the core technology personnel and backbone business personnel's personal interests with corporate value added value and shareholder interests reasonable tied up and effectively solved the company the principal-agent generated proxy cost, which is the indispensable part of corporate governance.The equity incentive refers to based on the performance evaluation of the managers, the core technology and business by the company stock\stock options or equity for executive; the core technology and business personnel's reward. It is mainly a stock incentive and option incentive two patterns, its theoretical basis mainly includes human capital theory, principal-agent theory, double factors incentive theory, etc.Nanjing austral industrial decoration Co., LTD is a melting medium adornment engineering, display engineering and landscape engineering, outdoor large media engineering design, construction, supervision and advertising production engineering as a national level 2 private engineering company private. In the company's development and management process, equity incentives for its speaking not only has the necessity, and feasible. Equity incentives can not only prevent burgeoning shirking behavior and misappropriation of funds, and be able to make their behavior attention the long-term development of the enterprise, form a stable core team, and relieve pressure company funds. NG Limited Company is a scientific assessment system, good growth and perfect the corporate governance structure of the modern enterprise, this all for the equity incentives provided security conditions.The kinds of equity incentive have many, NG limited company must according to the actual conditions of the selection and design suits own equity incentive mode. In the stock ownership incentive model selection and design must be considered when executive pay structure, effective on managers' motivate, determining the performance targets and manager equity incentive problems such as the deferred ductility. As a private company, NG of listed companies relative to the stock ownership incentive mode totally different, to be able to smooth implementation of the stock ownership incentive, the related elements which will be targeted design.