The Case Study Of Ruifeng Photoelectric's Share Option Incentive Scheme

In mature captial market,equity incentive is the most effective way to promote consensus between company'sexecutives and shareholder interestsreached on.With the establishment of modern enterprise management system and implementation of the shareholding system reform in China,more and more companies are recognizing that the equityincentive can improve the corporate governance structure,increase efficiency,enhance the optimal allocation of enterprise comprehensive competitiveness.But due to the less perfect development of market economy in China and immature incentive mechanism,the incentive effect is influenced by a variety of factorsand cannot be predicted.In this thesis,the impact of equity incentive on Ruifeng photoelectricity is discussed by means of case analysis.Firstly,the case description of the equity incentive plan is introduced,and the background reason,the incentive way and the main content of the implementation of the equity incentive of Ruifeng are briefly introduced.Secondly,it analyzes thecase,overviews the design elements of the incentive plan,and analyzes the implementation effect of the incentive from the four main aspects,includingmarket reaction,long-term performance,human resources and innovation ability,Analyzes the shortcomings of the program design and the lack of implementation process.Finally,the conclusion and implication are provided.The sutdy concluded that the setting of assessemment indicators of Ruifeng company's equity incentive plan is not comprehensive enough.Other problems,such as lack of careful analysis and lack of relevant information disclosure of incentive plan are also identified.The study concludes that the company's,equity incentivedesign defects in terms of incentive object,exercise price and incentive period.According to the principles of theoretical guidance and the conclusion of the paper,the author puts forward some reasonable suggestions for the improvement of the whole design and implementation of the incentive scheme.It hopes to design a combination model with the maximum effect of share option incetive scheme and provides reference and recommendation for the compnay's next equity incentive plan and the country's share option incentive scheme.