Design Research On Equity Incentive Plan For Listed Companies

Separation of ownership and managerial authority is an important characteristic of modern enterprise.The emergence of professional manager is the important products of the separation of ownership and management rights.Due to the separation of ownership and management in corporations,the principal-agent relationship leads to the agency cost problem.In order to solve this problem,scholars and enterprises domestic and overseas through a variety of theoretical research and practice,constantly improve and enrich the supervision system and incentive system.Equity incentive is called to solve principal-agent problem and reduce the opportunity cost.The research and practice of equity incentive in our country is relatively late.After the completion of the equity division reform,more and more enterprises begin to implement the equity incentive.By the end of February 21,2017,China's a-share market there have been 934 companies announced the implementation of equity incentive.Some enterprises in the process of performance pledge to improve the company's business.At the same time,some enterprises in the process of performance pledge to not improve the company's business.This article selects the glass manufacturing industry listed companies of CSG Holding Co.,Ltd.and Zhuzhou Kibing Group Co.,Ltd.as a case study.Because the equity incentive solution differences,CSG Holding Co.,Ltd.Caused the personnel earthquake,while Zhuzhou Kibing Group Co.,Ltd.got the ideal effect.Through the comparison of two equity incentive scheme,this paper analyzes the reason that caused failure of CSG Holding Co.,Ltd.:(1)Major shareholders control the company and the welfare solution is difficult to obtain large shareholders' approval;(2)That lack of communication leads to the solution not to be improved.Through the analysis of the successful implementation of equity incentive,the key element is strong incentive motivation.Through the comparison of two opposite incentive schemes,for more enterprises implement the effective equity incentive plan,this paper puts forward the following suggestions:(1)To establish the scientific equity incentive performance appraisal system;(2)Strengthen enterprise's internal and external supervision;(3)Salary incentive and equity incentive to promote each other;(4)Strengthen the communication between management and shareholders to meet the demand of both sides.