The Design Of Equity Incntives Of Zhengzhou Th Building Co.,Ltd

Staff motivation is a crucial part in human resource management of an enterprise. As a matter of fact, there are many incentive options for a company to choose. However, among these ways, equity incentive has been widely welcomed by both domestic and foreign enterprises as it can significantly increase employees’sense of ownership.This paper mainly studies the staff motivation of TH Company in Zhengzhou City, Henan Province. Furthermore, a set of practical equity incentives is prepared to offer for this company. In the first section of this paper, the research background, its significance as well as its characteristics are introduced respectively. Besides, according to the specific conditions of the TH Construction Materials Co., Ltd., we analyzed the current situation of the staff incentive of this company. Finally, we found that a series of problems related to staff motivation were existing in this company, for example, they only focus on positive incentives but ignore the negative ones; they pay more attention to the material incentives but less to the mental stimulation. In the third section of this paper, a set of equity incentives is designed for this company accordingly, which is also the key section of the paper. Since TH is a non-listed joint-stock company, we finally chose the stock option as its main equity incentive. In the process of designing equity incentive schemes, we mainly focused on determining the equity incentive options, granting options, exercising options and a number of different issues. In order to perfect the staff incentives in an enterprise, we supplemented a certain degree of incentive mechanism except the equity incentive, which including the self-development incentives and the recognition incentives etc. As for whether this equity incentive can meet the needs of the enterprise and improve the enthusiasm of the employees, we took a trial operation and analyzed its results correspondently. We mainly analyzed the comparison of the business performance before and after the implementation of the equity incentive, and questionnaires about the incentive evaluation from its employees. After analysis, we knew that the implementation of the equity incentive not only improved the enterprise’s operating revenue also reduces the cost of business, at the mean while, employees highly evaluated the equity incentive mechanism which can be completely able to meet the needs of enterprises.