The Researches On The Equity Incentive-based On GT Company

With the process of the modernization of enterprises,the decentralized system of corporate shareholders and business management has been recognized and accepted by the market,the cause of the Principal-agent problem and how to reduce the principalagent cost is also actively studied by scholars,equity incentive system is a good solution to this problem.Since the reform of ownership structure in China in 2005,more and more company begin to implement equity incentive system.How should the shareholders of the company choose the appropriate equity incentive plan,so that shareholders and management to achieve a win-win situation,this is also the question which this article wants to study.This article is divided into two parts,the first part introduces the background of the selected cases,including the history and current situation of China's smart home industry and the position of GT company in the industry,basic financial data and combined equity incentive program of progress of GT company,then tease the implementation of the incentive plan.The second part introduces the background and significance of this article,and give a comprehensive description of the development process of China's equity incentive policy,then make a summary and comb on the issues of equity incentive point through the literature review of domestic and foreign scholars by using the method of case analysis to the equity incentive plan incentive scheme GT company uses and the other equity comparison in the last,comparing the advantages and disadvantages of the three main ways of equity incentive and the difference in the payment of income tax to analyze the equity incentive programs for the implementation of GT optimal,through the case analysis of China's current equity incentive tax policy to put forward advices,give more suggestions for further improving the tax policy of equity incentive in China.