The Impact of Vanke Equity Incentive on Business Management

Abstract

The problem of internal governance in modern enterprises is prominent. In order to stimulate the vitality of company organizations and managers, improve company performance, establish a hub between managers and shareholders, implementing equity incentive systems can help to achieve long-term value improvement and reduce agency costs. This article takes the current situation of Vanke Group from the first implementation of the equity incentive plan in 1993 to the present situation of Vanke Group, and the changes that have occurred in Vanke as the object of this article's case study. Combined with the perspective of corporate management, this article summarizes the role and impact of the equity incentive system on Vanke corporate governance, obtains inspiration from it, and puts forward suggestions for improvement, providing reference for the design and improvement of the equity incentive system for listed companies in China.