EVA and Enterprise Incentive Performance Appraisal — Enterprise Equity Reconstruction and Incentive Series

Author: Wang Chun
Publisher:
Publish Date: 2004-07-01
Features: Equity incentive is not only a system but also a means of quantitative redistribution. Therefore, it is essential to consider how to evaluate it during implementation. Economic Value Added (EVA) is currently a popular comprehensive evaluation method internationally, widely used in various fields such as enterprises, investment, securities, and management. Many renowned multinational corporations and large capital institutions around the world have already set numerous relevant precedents in practice. The application of EVA in China, especially in performance evaluation for establishing long-term incentive mechanisms using equity, is still in the exploratory stage, but it has already demonstrated its accuracy and systematic superiority. The success of EVA lies in making managers and employees think and act like shareholders, allowing it to be closely integrated into various management decisions to make decisions that maximize shareholder interests. This book not only provides a comprehensive description of the content and methods of EVA performance evaluation but also explains how to establish incentive mechanisms and form effective long-term incentives based on this foundation. Particularly, combining EVA with equity incentives can identify defects in the incentive process due to insufficient constraints and avoid negative effects in equity incentive operations, thereby making equity incentives more standardized and effective. Business managers can find a brand-new management tool and approach through this book. Equity incentive is not only a system but also a means of quantitative redistribution. Therefore, it is essential to consider how to evaluate it during implementation. Economic Value Added (EVA) is currently a popular comprehensive evaluation method internationally, widely used in various fields such as enterprises, investment, securities, and management. Many renowned multinational corporations and large capital institutions around the world have already set numerous relevant precedents in practice. The application of EVA in China, especially in performance evaluation for establishing long-term incentive mechanisms using equity, is still in the exploratory stage, but it has already demonstrated its accuracy and systematic superiority. The success of EVA lies in making managers and employees think and act like shareholders, allowing it to be closely integrated into various management decisions to make decisions that maximize shareholder interests. This book not only provides a comprehensive description of the content and methods of EVA performance evaluation but also explains how to establish incentive mechanisms and form effective long-term incentives based on this foundation. Particularly, combining EVA with equity incentives can identify defects in the incentive process due to insufficient constraints and avoid negative effects in equity incentive operations, thereby making equity incentives more standardized and effective. Business managers can find a brand-new management tool and approach through this book.