Case Analysis Of Restricted Stock About Design And Incentive Effect

As an important incentive mechanism,restricted stock is designed to coordinate the contradiction between commissioned and agent for improving the long-term economic benefits.With the widely application in the modern enterprise,the important role of restricted stock is also reflected in retaining key employees for laying the foundation for the strategic target at the time of economic downturn.Restricted stock incentive has promoted the development of economy by its special system arrangement,and has been widely applied in western countries. But it has only just begun in China.Many companies questioned about some long-term incentive model including stock options under the influence of2008financial crisis, At this point,restricted stock has received more and more attention,many companies began to explore the implementation of this incentive mode.Whether the restricted stock can play a stimulating role?How to show its superiority compared with Stock option incentive?And what problem will come out during the implementation process?Those were the core contents which are discussed in this thesis.Based on the incentive theory and related to Bright Diary Company as background,we should make a comparison between two restricted equity incentive schemes’key factors firstly. Secondly,we should simulate the choice of equity incentive mode by value guidance, then analyse the possible problems in the process of implementation of restrictive equity incentive and draw a conclusion finally.This paper argues that we should take the specific conditions of reality into account when we design a restricted stock incentive scheme,and that restricted stock performs more steadily and pragmatically than stock options.We should construct a diversified index evaluation system to measure the incentive effect.