The Study On Equity Incentive Contract Optimization Of Chinese Small And Medium-Scale Listed Companies

Equity Incentive becomes more and more popular as a management tool to lift the company competition. The government is tring best to improve the related rules and laws to offer a good environment to execute equity incentive. Recent years, small and medium-scale companies grow very fast. And they play an important role in the Chinese economic market. So, the research and case study on equity incentive for these kinds of companies will be more meaningful and bring more benefit to our captical market.This paper attemps to find out the stength and shortage of current equity incentive contract base on the domestic and oversea research theories in order to find an optimized equity incentive contract for our small and medium-scale companies. The research starts from the overview of the current status of equity incentive, including the industry allocation, the contract structure; Additionally, the research also covers what kind of contract will have better result of incentive. Then, statistics models are designed to check the relationship between several influence elements.As the different contact detail of equity incentive will have different effect in different industries and companies, after the theory suggestion, the case study is also applied to check how to improve the contact detail. It will offer a clear picture on an optimized equity incentive contact.