The Implementation Effect And Perfecting Countermeasures Of ZTE Telecom Executives' Equity Incentives

In most modern enterprises,the owners of enterprises need to hire professional managers,that is,senior managers to manage enterprises,because of their own management level and capacity constraints,which leads to the separation of ownership and management rights.In order to balance the interests of both parties,many companies try to maximize the interests of both parties by implementing the executive equity incentive plan,so as to effectively reduce the agency costs of the company.However,companies have also shown some problems in the implementation of the executive equity incentive program.For example,the governance environment still needs to be improved,setting a single performance appraisal indicator,the intensity of equity incentives,the low price of stocks and the short time of restraint,etc.,which cause problems for the long-term development of enterprises.As the largest listed company in China's communications equipment,ZTE Corporation announced two-year executive equity incentive plans in 2006 and 2013,becoming one of the representative companies to implement executive equity incentive programs.The paper first analyzes the specific content of ZTE's two-stage executive equity incentive plan,and from the content,implementation process and implementation results,the two-stage executive equity incentive plan is sorted out.Secondly,through the three aspects of financial performance,market reaction and personnel turnover,the effects of ZTE's executives' equity incentives are analyzed.It is found that the equity incentives of the two senior executives of ZTE have played a certain positive role.Thirdly,based on the analysis of the two-stage executives' equity incentive plan,some problems found in the implementation process were found.Finally,from the five aspects of corporate governance environment,performance evaluation indicators,incentive period,exercise price,incentive range and quantity,targeted improvement measures are proposed.The paper's research on the equity incentive plan of ZTE's executives not only helps to solve similar problems encountered by other companies,but also achieves the best incentive effect for the executive equity incentive plan,and helps to enrich the executives' equity incentive mechanism.The correct development direction of the executives' equity incentive mechanism.