| When retail businesses want to expand their scale, most of them choose chain-store method, opening more and more chain stores increasingly. When the number of chain stores exceeds a certain amount, principal-agent issue will take place clearly among each chain store. At the same time, there are these common problems like lack of talents, non-effective employee incentives and staff turnover, as most Chinese minor enterprises have, causing low-level redundant development of chain store and running poorly problems. Equity incentive, through which enterprise releases surplus value to operator can solve the conflicts between owner and operator caused by principal-agent. What’s more, Equity incentive is a medium or long-term encouragement mechanism, which makes operator pay more attention to the long-term development of the enterprise and be more active and stable.This thesis studies the implement of H Pharmacy Chain Store’s equity incentive design. First, it introduces current situation of equity incentive mechanism research abroad and domestic and summarizes relevant theories and concepts of cooperate chains’ equity incentive encouragement implementation. Second, it analyses H pharmaceutical cooperate chain’s operating, telling the necessity to implement equity incentive encouragement mechanism. After making comparisons between phantom stock and real stock of common equity incentive encouragement mechanism, considering many effecting factors and referencing other cooperate chains’ encouragement mechanism, it works out an equity incentive encouragement mechanism that suits H pharmaceutical cooperate chain right now which are retaining right of extra profit plan and store manager holding shares similar to options. It also gives suggestions about how to implement these encouragement mechanisms effectively. For retaining right of extra profit, chain store’s operating team must meet profit targets company set for him. On the other hand, chain store doesn’t need to invest in capital,. He only needs to participate in operating activities of store with his ability. This is an respect for human capital.The thesis makes an conclusion that implementing reasonable equity incentive encouragement can improve the operating efficiency of chain stores. At the same time, it can make employee be a part of the company and make them more active, creative and responsible. It makes employer-employee relationship be a cooperating and sharing relationship, and it finally can make chain store run continually. |
