Abstract This paper discusses the problem of optimizing combined incentives of manager's reward on equity and nonequity. It establishes the two-staged game-theoretic model, obtains the optimized reward combination and the optimized proportion of equity allocation for manager through game analysis and optimization analysis, explores the effects of the changes of the various constituting parameters of equity allocation on its optimized proportion, and finally points out the highlights in designing the proportion of equity allocation for manager.
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