Analysis Of Originwater Equity Incentive Scheme And Evaluation Of Implementation Effect

In the era of separation of management right and ownership,equity incentive came into being.In order to prevent short-sighted behavior of managers,the owners of companies grant part of the equity to the managers,which can stimulate the managers.This can alleviate the principal-agent relationship.In 2009,China’s GEM began to offer shares publicly.Some high-growth high-tech enterprises are listed here.These enterprises mostly focus on high-tech talents.In order to retain more core personnel,more and more enterprises implement equity incentive plans.However,China’s equity incentive mechanism is not fully mature and lacks experience.Through the in-depth analysis of equity incentives implemented by OriginWater,this paper hopes that it can play a reference role for other enterprises that implement equity incentives.Based on Incentive theory,human capital theory and principal-agent theory,this paper uses literature analysis,graphic analysis and case analysis to analyze and interpret the case of OriginWater equity incentive.This paper chooses OriginWater Phase III equity incentive plan as the research object.Since OriginWater went public in 2010,it has implemented three equity incentives.The motivation of implementing equity incentives is analyzed.Then the specific details of equity incentive plan are introduced,including incentive object,exercise period,grant date,exercise conditions,etc.This paper mainly analyses the three-stage equity incentive scheme implemented by OriginWater and evaluates the implementation effect of OriginWater equity incentive from three dimensions: the impact on company elements,the impact on financial performance and the impact on market performance.Based on this,some suggestions for OriginWater Water Resources and other high-tech enterprises are put forward.The innovation of this paper is to continuously track the complete equity incentive plan of OriginWater Phase III,and to evaluate the implementation effect of equity incentive from multiple levels.After analysis,OriginWater implemented the equity incentive plan,which has a good impact on the company’s elements-innovation ability,the number of employees,quality and management mode,and has played a positive role in financial performance to a certain extent,but the performance of operation ability and growth ability is not good.This paper uses event analysis method to analyze the performance of OriginWater ’s stock price.After the implementation of equity incentive,the stock price fluctuates greatly.It shows that the implementation of equity incentive has brought positive impact to improve the performance of OriginWater,but there are still some negative effects.