A Case Study Of Company Equity Incentive

Happened two rights separation of ownership and management in the principal-agentproblem, shareholders and managers are linked by a series of contract as the link, but their goalinterests are not always consistent, based on the rational person hypothesis of economics, they inthe pursuit of self-interest maximization exist in the process of natural conflict of interest. Theequity incentive as a kind of effective and lasting incentive mechanism, to slow down to a largeextent the principal-agent problem between shareholders and managers, prevent short-termbehavior, promote the long-term growth and development of the enterprise.Listed in the U.S. standard&poor’s500index of top250listed companies,98%of thecompany has created the stock option system,55%of the company issued restricted stock in themarket,58%of the design and implementation of the company and the company performancedirectly linked stock awards. After joint stock system reform in our country, the implementationof equity incentive of the external environment for the greatly improved, and A company is thefirst start after equity division reform, equity incentive mechanism of the construction of thedomestic listed company, the company has two stages of incentive scheme, for the improvementof domestic listed companies the implementation of equity incentive plan is of great importance.Based on A company’s equity incentive plan as the research object, using the related theory,the comprehensive research, to A company’s equity incentive plan has carried on the detailedanalysis, starting from the background of the company, incentives, the two different period ofthe equity incentive plan: the content of the in-depth analysis of the first phase project, thescheme impact on company performance and the last the cause of the failure; Content, theeffects of the modifications in the second stage, the reason of success and the problems that stillexist, finally combining case company can draw lessons from the experience of the incentivescheme and aimed at the problems puts forward improvement Suggestions.Through the analysis of A company’s equity incentive scheme aims to domestic listedcompany equity incentive plan provides referential experience, at the same time in order tosmooth implementation of equity incentive obstacles needed for continuous improvement of thedomestic economic environment, policy environment, capital market environment, legalenvironment, etc.