Research On The Problem Of BXNY Company Equity Incentive

Equity incentive is an important longer-term incentive and restraint mechanism. This mechanism conferring the stock option to the incentive objects so as make them connected to the benefits and risk of shareholders.It can easily solve the agency problems and information asymmetry problems.It can also make the management focus on the long-term sustainability,which is not strive for the short-term profits.Equity incentive has been recognized by the majority of companies,experts and the media in western countries.In the 1950 s and1960s,Equity incentive originate from United States America,fast-growing in the world.More than 90% companies have carried out the equity incentive plan among the companies listed in World Top 500,which retaining the key talents.In 2005,China issued the relevant laws and regulations to standard the implementation of equity incentive companies.Only in2006,more than 400 listed companies to apply for the implementation of equity incentive plan to the China’s Securities Regulatory Commission.In this paper,first of all,summarize the research of Chinese and foreign scholars on the equity incentive related problems, the concept and the main types of the equity incentive,the advantages and disadvantages of the main types.Secondly,introduce the basic theory of equity incentive including the principal-agent theory,motivation theory,human capital theory and the key step of equity incentive plan including designing,approving and doing.The last but not the least,with the theory contact practice,do in-depth research on BXNY company.The research including:the basic situation of BXNY company,the implementation of equity incentive background which include the external circumstances and internal conditions.Then introduced the original scheme and the implementation of equity incentive.Finally,according to the financial analysis and the analysis of stock price,find that equity incentive plan exists some problems,and put forward the optimized design scheme.Finally,put forward some measures to ensure the implementation of equity incentive.Due to the original plan of BXNY company exists some problems,this paper hopes to optimize the equity incentive plan to make the goal of stable operation and sustainable development come true.