Study On The System Of Equity Incentive Of Beijing Aichi Star Technology Development Co. Ltd

With the development and improvement of China's market economy and the development of economic globalization, China's enterprises have developed rapidly. Also competition among enterprises is not only competing for resources and talents, but also on the ability of management and innovation, and how to make full use of the existing enterprise resources. Among them, Human Capital has become one of the core elements to promote business growth. Therefore, it is Important to establish effective corporate incentive and restraint mechanisms to retain and attract talent and to motivate employees. Equity incentive could combine the interests of employees with the interests of shareholders closely together, and it has a function to retain and attract talent and also to motivate employees of enterprises. Based on the theory about equity incentive, this paper, making Beijing Aichi Star Technology Development Co., Ltd. as the research object, apply comparative Analysis, qualitative and quantitative methods to build the equity incentive system of Aichi Star.First, this paper summarized the research situation of Equity Incentive domestic and foreign and set forth the theory about equity incentive. Then, this paper made a more comprehensive analysis on the design of equity Incentive system form eight elements and provided a guideline for the design of equity incentive system of Aichi Star.Second, this paper analyzed the present situation of Aichi Star and found the lack of company incentives and the existing problems. On this basis, this paper, referring the function of equity incentive, made a detailed analysis of the necessity for the implementation of equity incentive of Aichi Star. Based on the situation of Aichi Star, this paper, combined with the advantages and disadvantages and applicable conditions of various models of equity incentive, selected Virtual Stock Equity Incentive Model for Aichi Star. And then, this paper made a detailed design of virtual stock option incentive plan of Aichi Star in accordance with the eight elements of the design of equity incentiveFinally, from the building of performance appraisal system, internal control system and construction of corporate culture, the paper made a more detailed description of the supporting measures of virtual stock option incentive plan of Aichi Star. The supporting measures can not only protect the implementation of the equity incentive plan of Aichi Star smoothly, but also can improve the company's management to some extent.