Research On Stock-based Employee Compensation Plans In The China’s Listed Companies

With the increasing complexity of the company’s equity is increasingly decentralizedand management technology, the world’s large companies have been the trend ofseparation of ownership and control, in order to effectively address the principal-agentproblem, a reasonable incentive constraint management staff as well as the core technologyofficers of large U.S. companies with stock options and other equity incentive anddevelopment achieved popularity in the1980s. Influenced by the United States, manydeveloping countries in the1990s to establish or improve the equity incentive system, sothat option incentive to become the world listed companies is the most important incentivemodel.In contrast, the incentive system of Listed Companies in China lags behind is veryincompatible with the rapid development of China’s securities market. It’s urgent and verynecessary for China to loosen policy restriction and allow the listed companies employeestock options and other stock-based employee compensation plans to motivate and detaintheir employees, especially senior managers and key technicians.This paper first introduces the background and purpose of this article describes themain research contents, research methods and possible innovation. On the basis of theintroduction of equity incentive related theory, based on the development of China’s listedcompanies incentive stock options, analyze the problems of listed companies in varioustypes of equity incentive model selection, and through Suning equity incentives theimplementation of the actual case, our listed companies in the selection of the equityincentive model, especially the use of this mode of stock options should focus on and learnfrom problems, and finally a summary of the implementation of equity incentive faced by the institutional environment and improvements to our listed companies, and raised thelack of research in this article.