Research On The Condition Design Of YXGF Equity Incentive Exercise

To the executive incentive mechanism squarely originates from the demand of social practice.In the case of incomplete information,the most important research problem in economics and management is what kind of optimal incentive mechanism should be adopted for senior managers.Long-term incentives are becoming an important part of the executive pay portfolio in many countries around the world,and longer-term incentives are higher in more developed countries.Some research shows that the long-term performance of companies that implement ESOP is much higher than that of non-ESOs.From the reform of split share structure in 2005 to the present,the development of stock right incentive in our country has only passed for many years,from the beginning of entering the market to the present day’s listed company.It becomes clear that,depending on the specific situation,the listed companies in China have become rational rather than just following the trend when formulating equity incentive plans.Although it has entered the stage of rational development,our country also has its own special national conditions,and some existing theoretical research is based on the empirical results of foreign enterprises’ equity incentive experience,or the transformation of foreign theories.And more about the impact of equity incentives on corporate performance,less on the exercise conditions,so this paper chooses to use a unique perspective to study the exercise conditions in the equity incentive plan.Exercise conditions occupy an important position in the equity incentive plan,so The rational setting of exercise conditions is very important to the successful implementation of the equity incentive scheme.More and more listed companies in our country begin to implement equity incentive.Through the case analysis in this paper,we hope that this paper can provide reference for future listed companies in designing the conditions of equity incentive exercise.This paper is divided into five parts.The first part is the introduction,which describes the research background and significance,the current research situation at home and abroad,the research ideas and research methods,as well as the research innovation and characteristics.The second part is an overview of the relevant basic theories.Firstly,the related concepts are expounded.Secondly,the mode of equity incentive is introduced,including restricted stock incentive plan and stock option incentive plan.Then explain the relevant knowledge of equity incentive exercise conditions,and finally explain the theoretical basis of equity incentive.The third part studies and analyzes the conditions of YXGF equity incentive.Firstly,it introduces the background of YXGF company and two times.A case study of the design of the conditions of exercise of equity incentive is given,and then the author compares the conditions of exercise of two times of equity incentives,and finally explains the reasons for the failure of the design of the conditions of exercise of the second exercise.The fourth part describes the inspiration of the design of YXGF equity incentive exercise conditions,including the rational setting of exercise price,the scientific formulation of non-market conditions indicators and appropriate introduction of market conditions.The fifth part is the conclusion and prospect of the research,summarizes the research results of this paper,points out the deficiency of this research and makes the prospect of the future researchBased on the analysis of the case of the two equity incentive conditions of YXGF,this paper finds out the three main reasons of the failure of the second equity incentive,such as too high exercise price,unreasonable index of non-market conditions and lack of market conditions,from which they are enlightened.Reasonable setting of exercise price,scientific formulation of non-market conditions and proper addition of market conditions are the three main points that should be paid attention to in designing equity incentive exercise conditions of listed companies,in the hope that they can be used for reference by listed companies in the future.