Disscussion On The Issues Of Shanghai Jahwa's Equity Incentive

In terms of talent management,the problem facing the company is how to attract excellent talents and make shareholders and managers share a common interest.A lasting and effective incentive is very important in the management of the enterprise.It is very popular in enterprises because it plays a very important role in retaining talent and maximizing the value of the enterprise.Pfizer is the first company to adopt this method in the United States.It allows managers and employees hold shares in the company so that the interests of the company is closely related with their personal interests in order to reduce the chance of making a negative choice of the company at work.The company adopts the way of equity incentive to make the core managers become one of the shareholders of the company.In general,the more shares held,the higher the relevance of shareholders to the company's interests.With the growing number of shares held,the sense of responsibility will be stronger.The biggest problem the human resource department faces is how to recruit talents while maintaining the excellent employees who are already in company.If the company make excellent employees hold shares and establish a more perfect and scientific performance appraisal system,the staff will work hard for personal interests,which is also the process of maximizing enterprise value.A scientific performance evaluation system could form a situation of survival of the fittest,which will not only solve the problem of agency costs,but also solve the problem of brain drain.At present,equity incentive is still in a new stage of development in China.This paper introduces the equity incentive scheme under different backgrounds of property rights in Shanghai Jahwa.By contrast,the equity incentive scheme after the change of property rights is more scientific,but there are also shortcomings.In view of the shortcomings of the equity incentive plan,the reasons are analyzed and the suggestions which correspond to the reasons are put forward in this paper.The method of literature research,case analysis,comparison analysis and financial analysis is adopted in this article.The paper is divided into six parts.The first part is the introduction which is composed of the background and significance of the research,the literature review and the main ideas and methods used in this paper.The second part is the overview of equity incentive,where the concept of equity incentive and the significance is stated,the main mode of equity incentive is listed and the theoretical basis of equity incentive is summarized.The third part is a detailed introduction to the equity incentive of Shanghai Jahwa United Co.,Ltd.(hereinafter referred to as Shanghai Jahwa)where each equity incentive plan is compared and the effect of the equity incentive scheme is analyzed.Although the plan is more scientific than ever before,there are still some problems.And then the problems of equity incentives and the reasons why these problems exist are elaborated in the fourth part.In this regard,solutions are put forward in the fifth part.The sixth part is the conclusion which is the summary of this article.In short,there will be problems in equity incentive under the background of different property rights.That is not to say that the equity incentive plan must be perfect after Shanghai Jahwa changed from state-owned enterprise to private company.The company needs to have a scientific governance system.Regulatory authorities should treat state-owned enterprises and private enterprises differently.