Case Analysis Of Stock Equity Incentive Plan Used By Listed Companies Of China

Pfizer is the company in the world which firstly approved the grantof stock option to the certain directors of the company in1952. Then thegrant of stock option has been widely used by the companies in theEurope and America.In the early1990s, management incentive plan have been tried bysome companies in China. In2005, the equity division reform has builta good foundation for the development of Chinese capital market, thenthe regulators issued a series of legal documents and guidelines about theequity incentive which has been widely used by the companies.Equity incentive is an important way to solve the agency problemand the value of human capital. Because the individual nature of thecompany, the difference between the industry, development stage and thecorporate governance, so it should study the specific case that can get thevaluable view.In this article, I study and analyze the equity incentive by the fourcompanies which are respectively listed in the mainland of china andHonking. In especial, I study the effect of the impact of the company’s controlling shareholders and actual controllers to the equity incentive.Results show that: The internal Controller have selfish motives.Rationality and validity of equity incentive plan are an important premisefor the implementation of the equity incentive mechanism. The effectiveof the corporate governance and internal control mechanism, the perfectof regulations and the mature capital market environment are animportant way to improve the equity incentive scheme.The suggestions in the article are useful to the optimization of lawsand corporate governance, and also are available to the market regulator.