The Research On The Problems And Inprovement Of Equity Incentives Of Managerial Staff In A Company

At present,in the “China’s New Normal” background,national strategy and environment provides opportunities and guarantees for private enterprises.The ability of enterprises to deploy and utilize human resources is related to whether the enterprises can maintain the leading position in the market competition.With such wonderful development opportunity,how to attract and retain talents,and fully mobilize their enthusiasm and creativity during work,it has become a problem that must be carefully considered in the process of enterprises development.In recent years,with the continuous improvement of related policies and legal system of equity incentive in China,equity incentive has become a common practice in the management of most enterprises as a long-term incentive measure.Render managerial staff a share of the company to making them to enjoy the residual value of the right,but also bearing the company’s operating risk.It can improve the corporate governance structure,reduce agency costs,make further mobilize the enthusiasm,cut down the risk of loss of managerial staff,achieve the effect of parallel incentive and constraint.Then,to maximize the interests of shareholders and enterprises,achieve long-term development of the company.As a private non-listed company,A develops,produces and sells cartridge materials.Due to the favorable national policy,the introduction of new pharmacopoeia and other external environmental factors,the packaging materials industry will be further development and achieve industrial upgrading.A company in the face of the development process of rare opportunities,to adapt to the development of the industry a good situation,need to speed up its own development,enhance the company’s performance and core competitiveness,in order to occupy the initiative in the industry upgrading.As an important part of enterprise talents,managers play an important role in uploading and publishing,and their work performance is closely related to the development of enterprises.A company is faced with the urgent need of integrating all kinds of resources,especially human resources,so managerial staff should be encouraged to mobilize their enthusiasm and give full play to their positive role in the enterprise.This thesis is around A company’s current managerial staff equity incentive scheme,found that in the choice of equity incentive mode of implementation,there is no combination of the actual situation of the enterprise development stage.The proportion of equity incentive is low.There is no objective and reasonable basis for choosing incentive objects,and setting up granting quantity,exercising conditions and standard of withdrawing mechanism.As well,there is no established performance assessment system to ensure the implementation of equity incentive scheme.This paper puts forward some suggestions to improve the equity incentive scheme of A company,hoping to have a certain guiding significance for the formulation and implementation of the next A equity incentive scheme.First of all,according to the development of the industry,the development stage of the enterprise,the characteristics of different equity incentive methods to choose the appropriate types of equity incentive for enterprises,then,A company is suitable for the choice of stock options as managerial staff ’s equity incentive scheme at this stage.Secondly,the source of stock,incentive object and the quantity,the exercise price,the waiting period,lock up period,the exercise conditions and exit mechanism and other factors should be consider during formulating the stock option plan.Again,the performance assessment system should be establish to support the implementation of equity incentive scheme.It is suggested that A company adopt Balanced Score Card,then,it should be clarify the company’s strategic objectives,functional departments responsibilities and managers’ job responsibilities,and abstract the key performance indicators and set up index weight.Finally,performance assessment institutions should be set up to ensure the objectivity and impartiality of performance assessment’s procedures and results.