The Research On Equity Incentive Of Our Listed Companies

Separation of two rights is an essential feature of modern enterprises. Althoughsuch separation is an effective form of economic organization, it also brings manyproblems. The owner and the manager will pursue their own utility maximizationrespectively, but their interests are not always consistent. At this time, such phenomenamight occur that the manager does not run the enterprise in accordance with theinterests of the owner, or even damages the owner’s interests so as to seek his owninterests. Under this background, stock ownership incentives come into being. Thispaper aims to analyze the influence of stock ownership incentives on the listedcompanies in China’s Growth Enterprise Market (GEM) through case study. Based onthe special economic environment of China as well as the situation of AIEROphthalmology, the influence of stock ownership incentives on the listed companies isanalyzed by means of case study. It is thus expected to provide reference for the listedcompanies to carry out reasonable and effective stock ownership incentives.This paper first introduces the basic concepts, including the basic elements ofequity incentive, implementations and the performance evaluation methods. Then,Introduced the theoretical basis of equity incentive. Following that, it analyzes thebackground environment for the listed companies to implement stock ownershipincentives. At last, the paper presents the descriptive statistical analysis of thesituations of China’s listed companies that have implemented stock ownershipincentives in recent years and the conditions of different sections. In the case study,AIER Ophthalmology Hospital is selected as the study object, and its stock ownershipincentives are analyzed from the aspects of implementation background, concreteschemes and implementation effects. Finally, the stock ownership incentives of AIEROphthalmology are summarized and relevant suggestions are proposed.Through Aier Eye Hospital Group’s case study, We believe that we should changea single equity incentive model into a mixed mode. AT the same time, we should develop a scientific standards and clear standards to increase the incentive target. Itshould also be dynamically combined equity incentives and staff positions. So that,every person in this position can get their company’s sufficient incentives through theirown efforts. In terms of sources of funding, companies should also be based on thespecific problems to use the method which combine extraction incentive funds andself-financing. In addition, the company should also be appropriate to extend thewaiting period and unlocking of their equity incentive, increase the diversity ofperformance assessment indicators. Through these methods to ensure the effectiveoperation of equity incentive.