Research on Equity Incentives of Listed Companies in China

More than 30 years have passed since the reform and opening-up policy.More and more listed companies have been founded.Experts in both theoretic and practical fields are exploring the ways to solve the conflict of interests between senior executives and the shareholders of the listed companies.Equity incentive mechanism is a good way to combine the interests of the companies' owners with the interests of senior executives, which will reduce the principal agent cost and promote the performance of the companies.It is long-term incentive for senior executives.Also it will realize the unification of the maximization of shareholder value and the maximization of individual interests of the senior executives.On basis of a large number of research papers and the realities in China, the article presents our implementation problems existing in the equity incentive plan from internal and external the companies and gives some solutions to the problems.