Research On The Design Of Equity Incentive Program In ZX Private Hospital

At present,China has deepen medical and health system reform.Thanks to a favorable policy,China’s private hospitals are confronted with unprecedented opportunities for development.However,there are fewer qualified medical and technical personnel in private hospitals than that of public hospitals.Therefore,it has always been a huge challenge for private hospitals to establish an effective incentive mechanism to attract and retain talents for a prosperous development.Equity incentive is acknowledged as an advanced incentive with decades practices in western countries.Compared to traditional salary incentive,equity incentive has many advantages in the long run,such as reducing shareholders’ agency costs and improving corporate governance structure.But because of many obstacles,equity incentive is seldom used in non-listed companies,not to mention unlisted private hospitals.The dissertation aims to analyze the current situation of human resources of the ZX private hospital,by comparison with a public hospital.Through a thorough research and elaborate analysis,the author thinks the private ZX hospitals fails to motivate its staff owing to various existing problems and thus it needs an equity incentive for further development.Besides,through a deep analysis of the external environment and internal conditions,equity incentive is entirely feasible and suitable for the ZX private hospital.Based on a comparative analysis of various equity incentive models,the author selects the phantom stocks as its equity incentive model,designs the various elements for the phantom stock incentive.Ultimately,the author puts forward a virtual stock incentive plan.The author designs two different types of virtual stock by using EVA theory to determine the amount of virtual stock incentive and phantom stock price.Moreover,the author designs a virtual distribution system of shares with a rational regulated period of virtual stock incentive,an exercise mode and an exit mechanism.Finally,the author probes into the implementation of safeguarding ZX hospital’s phantom stock plan.