A Case-study Of The Equity Incentive Problem Of Bodan’s Core Employees

With the increasing fragmentation of corporate equity and the gradual complexity of governance issues,equity incentives have been implemented to encourage more and more senior managers and core R&D personnel.Equity incentives specifically refer to an effective incentive mechanism that gives the operator a partial interest by means of obtaining the equity of the enterprise.This allows it to participate as a shareholder in important daily resolutions,share profits and share risks..In this way,employees of the company can increase their sense of ownership,and thus become more dedicated and better able to complete their jobs.Nowadays,scholars at home and abroad have conducted rich research on equity incentives.Most of the research methods are based on empirical analysis,and the research objects are mostly concentrated in listed companies.In this context,the analysis and research on the equity incentives implemented by different types of enterprises not only conforms to the general trend of domestic capital market,but also helps Chinese enterprises to learn from the experience of enterprise management in Western countries,and then explore The best mode for your country’s national conditions.This paper analyzes the equity incentives implemented by Shanghai Bodan Environmental Engineering Technology Co.,Ltd.,which can increase the types of existing equity incentive cases in the academic community and expand the scope of research.At the same time,it can provide more reference basis for similar enterprises in the design and implementation of equity incentives,which has certain practical significance.Shanghai Bodan Environmental Engineering Technology Co.,Ltd.is a well-known environmental protection engineering and service enterprise in China.It operates in Shanghai,China.This paper mainly focuses on the failure of equity incentives conducted by Bodan Environment on October 20,2016.First of all,the case of implementing equity incentives for Bodan environment is described in a more vivid and detailed manner in chronological order.Then,the complete process of the equity incentive failure event is analyzed step by step,and the problems appearing are summarized as three aspects:insufficient incentive preparation,poor mode setting and improper selection of incentive objects.Then,the main reasons for the above problems are analyzed from differentdimensions,and the reasons are summarized as three aspects: employees’ low recognition of the company’s equity value,poor company’s operating status and unreasonable company’s shareholding structure.And put forward relevant suggestions,and hope to play a certain role in guiding and helping Bodan environment in the future and the same type of enterprises in the implementation of equity incentives.