A Study On Improvement Of JY Company Equity Incentive Scheme

In recent years, with the development of economic globalization, the market competition is becomingincreasingly fierce. Advanced science and technology and efficient management level have already becomethe key factors for enterprise survival in the market. However the main factor is decided the enterpriseowned talents.The21st century is the age of talent. Only firmly grasp the talent can be in an impregnableposition in the market place. Enterprises in order to retain talent and get more talent, Provide wages is moreand more fatand form is more and more diverse. Obviously, the traditional salary incentive forms no longermeet the needs of enterprises, the equity incentive as a new incentive model also be recognized and used bymore and more enterprises. The equity incentive firstly blow a stream of hot air in the western theory andpractice. With the maturity of the equity incentive, many enterprises in China also try it. So far, the equityincentive in China has implemented seven years, but did not play its optimal effect. Practice proves thatcopying foreign experience is not desirable.To solve these problems needs to consider Chinesespecificnational conditions, combined the characteristics of the enterprise.Only in this way can make the equityincentive as a golden key to play its effectiveness.JY company as a technology company, the demand for talents is very urgent, combined with marketshare decline year by year, in order to retain talent, reverse this, JY company implemented the equityincentive plan in2011. But only a few months the plan was stopped, this result had to cause our thinking.This paper collected the JY company a large number of detailed information, had a certain degree ofunderstanding on the condition of JY company’s equity incentive. This paper first summarizes the equityincentive problems in four aspects, understanding of the environment of the equity incentive, the basiccontent of equity incentive, the performance appraisal system, the relevant supporting measures. These laidthe foundation for optimizing the equity incentive. Then, Aiming at the problem of the internal and externalenvironment of JY company, this paper applies the method of SWOT deeply analyzed the internal andexternal environment of the company to implement equity incentive. Approved the feasibility and necessityof the equity incentive. Aiming at the problem of the basic content of incentive scheme, combined relevantlaws and the actual experience to design the equity incentive plan,Aiming at the problems of performanceappraisal system, use this method to optimize appraisal indicators of the company’s equity incentive.Aiming at the problem of complementary measures, improve the corporate governance structure,strengthen the responsibility of the independent directors and financial advisers, perfect the informationdisclosure to equity incentive. Last, this paper summarizes the study, have four conclusions. The companyshould use SWOT analysis equity incentive environment; each of the equity incentive plan should havetheir own characteristics; indicators for performance appraisal is very important for the equity incentive;The perfect equity incentive measures is necessary. Hope that through the above research, this article forother relatedenterprises to provide the reference in design equity incentive plan.