Research On GEM Equity Incentive

Equity incentive as a long-term incentive system, its aim is to retain talent within enterprise in this way, to enable enterprises to maintain vitality and competitiveness. This paper analyzes the equity incentive background and the research significance from theoretical and practical aspects and listed the domestic and international literature review, which indicate the impact of equity incentive implementation on the performance of the company. Then, starting from the theoretical basis of equity incentives, analyzes the basic concepts and theories related to incentive stock options, such as human capital theory, principal-agent theory. Then analyze the status of implementation of equity incentive of the GEM listed companies, various elements of incentive plan, and features or problems of incentive programs in detail. The incentive target of companies listed on GEM is the company’s senior general manager, core technical staff. From the point of view of each company’s incentive target, each company is considering expanding the scope of the incentive target, there are a few companies are beginning to do the work in this area. Statistics from various aspects of the GEM equity incentive program shows that the executive price is not very reasonable, the executive period of validity and the waiting period is too cautious, the total number of shares granted to equity ratio is too less. However, the company’s equity incentive distribution shows obvious industry differences. It mainly concentrates on the IT and manufacturing industry. The company equity incentive shows significant regional differences from the geographical distribution mainly concentrated on eastern coastal areas, with developing economies show a certain degree of correlation. There is a certain similarity of companies in implemented stock option incentive in various elements of incentive plans. Therefore, to analyze GEM listed companies incentive programs can also see the problems of equity incentives implementation of all listed companies. Then take SZ as an example, to analyze all aspects of the company’s incentive scheme in detail, analyzes the advantages and disadvantages of its incentive target, incentive model, granting quantity, executing conditions and executive price. Taking SZ as an example that extends many problems of our equity incentive. Finally, in the fifth chapter, it gives the relevant policy suggestions. It shows that we need to enhance the effect of equity incentive implementation from the internal and external environment. We need to optimize internal governance, to make system performance evaluation standards and incentive program reasonable. In addition, we must continue to promote legislation of listed companies, to improve the construction of capital markets manager markets. This paper aims to achieve the purpose of analyzing the problem and to solve the problem. And sincerely hope that our equity incentive will develop towards the positive direction and to ultimately achieve the expecting effect.