A Study On Analysis And Optimization Of YX Company Equity Incentive Scheme

Equity incentive is a way to motivate employees by granting the operator stakes in the company.Equity incentive enables the operators to participate in business decision-making,risk acceptance,distribution of the surplus profits as shareholders.Then it can encourage the operators to contribute to the company's long-term development duteously.Theoretically speaking,equity incentive is an effective long-term incentive system,which is a conducive mode to the long-term healthy development of enterprises.The topic whether incentive can improve company performance remains highly contentious.Therefore,the thesis finds a specific company as a case,and analyzes the effect of YX company equity incentive deeply in order to discover the shortcomings of YX company equity incentive plan and propose the concrete optimized equity incentive measures and suggestions for YX company.The thesis combines theoretical research method with case analysis method.It views YX company as the research object,which is on the basis of summarizing Chinese and abroad research achievements.The thesis uses the principal-agent theory,human capital theory,incentive theory and residual claim theory for reference.First,this thesis defines the effect of equity incentive.Then,it constructs equity incentive effect evaluation system concretely from the perspective of reducing the short-sighted behavior of the senior managers,reducing the financing short-sighted behavior,reducing the management of short-term behavior,and improving company long-term performance and shareholder earnings.Next,it compares YX company data in 2011-2016 with the average of Chinese packaging material industries.Besides it also implements vertical analysis.On the basis of the construction of incentive effect evaluation system,the thesis that uses financial index analysis and comparative analysis evaluates the implementation effect of YX company equity incentive concretely from above four perspectives.After the analysis,the thesis discovers the problem of YX company equity incentive plan,such as the harsh conditions,the difficulties to reflect senior executive effort,the lack of first-line managers incentive,the improper choice of incentive opportunity,the shortage of incentive time.And after analyzing the problems deeply,the thesis raises some optimized suggestions pointedly for YX company.For example,YX company should introduce industry index into vesting conditions,introduce vesting multiplier into the share,choose equity incentive objects and the motivation scale reasonably,establish acomprehensive performance evaluation index system,and extend the period of incentive.And according to the status of the enterprise,the thesis proposes optimized plan.