Explorations Onto The Restricted Stock Incentive Plan Of Oriental Yuhong Waterproof Technology Co.,Ltd.

With the intensifying of market competition,company especially high and new technology companies take various incentive plans and measures in order to attract and retain talents people,and fulfill themselves.Among those various kinds of plans and measures,more and more companies tend to adopt equity incentive.Not only the market impels companies to attach great importance to the equity incentive,the government also pays highly attention to equity incentive.There is abundant evidence of practices and cases proved that equity incentive has obviously and significantly function on pushing companies' future development,enhancing overall competitiveness,attracting and retaining talents people.Equity incentive has many methods,among them the restricted stock belongs to a kind of long-term equity incentive mechanism,which could adapt to companies' enduring development in the future.The restricted stock has two advantages: firstly,incentive objects generally could buy shares without pay any cash or just pay a little,and it could also effectively solve companies' subscription financing difficult problem;Secondly,the strong binding of incentive objects is helpful to guide the these objects pay attention to companies' long-term development,and then to avoid short-term behavior and promote companies' enduring development.Beijing Oriental Yuhong Waterproof Technology Co.,Ltd.is the only listed company in waterproofing industry,and in 2017,it is on the first "manufacturing single champion cultivating company list" which issued by the ministry of industry and information technology.Oriental Yuhong disclosed the restricted stock incentive plan in2013.In the first chapter,the article gives the literature review from two aspects equity incentive and the relationship between management compensation and corporate performance.It presents situation of study on the literature review,and then puts forward the research mentalities and methods in this article.In the second chapter,it defines the conceptions of equity incentive and the restricted stock,expounds the theoretical basis of restricted stock: principal-agent theory,human capital theory and residual claim theory,and briefly introduces the main works to implement restricted stock incentive plan.The third chapter introduces the background of Oriental Yuhong's restricted stock incentive plan,including company profile and external environment.The fourth chapter makes the further detailed analysis of the three aspects that decisionmaking,terms designing and safeguard measures.Finally,through the analysis on the financial effects after the implementation of incentive plan,it thinks that the restricted stock incentive method makes Oriental Yuhong glow the new vitality and steps into a new growth cycle.After analyzed the reasons of the incentive plan's success,and combined with previous incentive plan content analysis,it summed up the incentive plan's experiences and problems which should attach importance.The vital experiences of the restricted stock incentive plan effectively are that dividing incentive objects strictly,establishing performance conditions reasonably and setting a scientific management system.Meanwhile,some potential problems in the incentive plan also should not be ignored,incentive intensity need reasonable control,note that dividends profits influence the original shareholders' benefits should pay attention,and the lack of risk bearing mechanism.This article's explorations onto the restricted stock incentive plan of Oriental Yuhong is aiming to provide the reference experiences and potential problems of other similar companies who would adopt the same mode in the future,and hoping it could have the enlightenment significance to them.