Category: Life WeiChu daily necessities

Question:
like to ask you a teacher who knows China Merchants Bank s equity incentive, what is intended?

Answer:
so different from 7958: Hello

managers and shareholders, is actually a principal-agent relationship between shareholders, management of assets entrusted to the manager. But in fact, in the principal-agent relationship, as information asymmetry between shareholders and managers contract is not complete, need to rely on the manager s moral self-discipline. Shareholders and managers to pursue the o闭经ectives are inconsistent, the shareholders want to maximize the value of its equity holders, managers wanted to maximize their own utility, so that exists between shareholders and managers moral hazard , through incentive and restraint mechanisms to guide and limit the behavior of managers ..

incentives in different ways, wages based primarily on the qualifications of the manager of a pre-determined conditions and the company during a specific period of relative stability, so the relationship with the company s performance was not very close . Bonuses generally the assessment of fi…