Research On Equity Incentive Problems And Countermeasures Of HUALU-HENGSHENG

Equity incentive is a hot issue in the field of corporate finance and corporate governance.It is also an important institutional measure for enterprises to pursue interest convergence,maintain competitive advantages and achieve sustainable and long-term development,especially in the era of high-quality economic development.Different from the existing framework and paradigm,this paper discusses the implementation effect,existing problems and corresponding optimization measures of equity incentive of provincial listed companies in China through case analysis.HUALU-HENGSHENG is the first listed company in Shandong Province to implement an equity incentive plan in the form of restricted stock.By studying and reviewing relevant literature on equity incentive,and taking principal-agent theory,human capital theory and incentive theory as the theoretical basis,this paper comprehensively uses the event study method and case analysis method to conduct in-depth research on the implementation of HUALU-HENGSHENG’s equity incentive.The research shows that the design of HUALU-HENGSHENG’s equity incentive scheme is too simple and he individual performance assessment of the incentive object is not perfect which is a welfare tool for maintaining senior management and key employees rather than a motivational tool.In order to solve these problems,HUALU-HENGSHENG needs to maximize the incentive effect by improving the scientific design of the equity incentive plan,fulfilling the performance evaluation truly,setting up the exercise conditions scientifically,and strengthening the supervision.In addition,to optimize the implementation of equity incentive,the internal system mechanism,external supervision mechanism and information disclosure mechanism need to be integrated.This paper provide guidance for the implementation of HUALU-HENGSHENG’s equity incentive to a certain extent.Meanwhile,the relevant research conclusions can provide theoretical support and experience reference for the equity incentive of provincial listed companies to facilitate the better development of enterprises.