WAD Co.,Ltd.Equity Incentive Research

As an effective incentive mechanism,equity incentives can combine the interests of the company,shareholders and employees more closely than the traditional salary and welfare system.It is conducive to fully mobilizing the enthusiasm of the operators.This is an effective means of retaining the company’s key talents and attracting external talents,and it has begun to be adopted by more and more companies.And the key is different company should choose the different equity incentive plan that suits the level of their development.The research object selected in this paper is WAD Co.,Ltd.,which is a fast-growing non-listed private company.In order to better encourage the company team members to develop together with the company in the fierce market competition,it decided to implement the equity incentive plan.Based on such background conditions,this paper proposes an equity incentive plan of restricted stocks and virtual equity hybrids based on the actual situation of WAD limited liability company,and conducts corresponding academic research.This paper is mainly divided into three parts.The first part mainly summarizes the relevant academic research on equity incentives.The second part mainly explains the background information of the equity incentive measures for the research case enterprise WAD limited liability company.The third part is the core of this paper.Mainly based on the development stage and its own characteristics of WAD limited liability company.It has made arrangements for the model,target,price,exercise rights and shareholding carrier of equity incentives,and proposes a hybrid equity incentive model of virtual equity collocation with restricted stocks.Through targeted equity incentive program design,the enlightenment of scheme design can be obtained.1.The design of equity incentive scheme must be based on the development stage and characteristics of the company itself.2.The company’s implementation of the new compensation incentive program must respect the characteristics of human nature and take care of the interests and cognitive levels of both the board of directors and employees.3.The company promotes a new policy plan,and should design a transition period as much as possible so that all parties can have an adaptation time and transition stage.Finally,I hope that the equity incentive plan proposed in this paper can provide some reference for other companies to implement the equity incentive plan,and make some slight explorations to improve the equity incentive system of non-listed enterprises in China.