The Equity Incentive Risk Identification and Prevention in State-controlled Listed Companies

Equity incentive is the important measure to perfect the company governance structure, and to establish incentive and restraint mechanism, but in the implementation process there are many risks. The paper based on the characters of the state-controlled listed companies and the current situation of implementing equity incentive, and analyzed the internal and external risks existed in the state-controlled listed companies' equity incentive, including: the moral risk, incentive deficiency risk, operational risk, policy risk, market risk, and legal risk. Then according to the cause of the risk, the paper proposed some risk prevention measures, such as perfecting the management talent market, establishing the evaluation indicators about operating results, cultivating the effective capital market, improving the relevant laws and regulations, and establishing the external supervising mechanisms, these measures ensured the equity incentive's smooth implementation of the state-controlled listed companies.