Research On Equity Incentive Of Non-listed Company

With the further deepening of economy reform, the enterprises are facing increasingly fierce competition. They compete not only in the market, but also in the internal management of enterprises, espcially the competition of talent and the difference of labor price have become increasingly prominent. Under this background and economic environment, equity incentive was introduced to China in the late 1990s, and was implemented in the listing Corporation first. As a long-term encouraging mechanism, equity incentive implemented by domestic and abroad enterprises proved that it plays an important role in promoting the healthy development of enterprises, improving the corporate governance structure, distribution system and corporate culture.At the same time, we found that many implementation of equity incentives did not effect as expected and are mere formality due to the lack of scientific planning and related conditions. The incentive object focused only on the assessment indicators, but did not combine with the company’s long-term development strategic goals. The equity incentive did not play a real long-term incentive role,and misled people’s understanding on this new incentive model.In view of the above reasons, using the method integrating theory with practice, relying on principal-agent theory and human capital theory,this paper studied incentive program design, incentive mode, operation effect, operational mechanism complentary conditions and operation management in non-listed company’s salary system, aimed at finding equity incentive plans adapted to non-listed company to enhance their corporate cohesiveness and market competitiveness, ensure the realization of enterprise long-term development strategic target, and adapt to the development of China’s overall economic environment...