Evaluation And Optimization Of Equity Incentive Plan For Listed Company J

The separation of ownership and management right between modern firms makes the agency problem between management and shareholders an important problem in corporate governance.Equity incentive is one of the important ways to solve the problem of agency.In the developed western countries,the use of equity incentive is quite extensive.In contrast,the development of equity incentive of listed companies in China is lagging behind.In 2006,the shareholding reform was completed to clarify the obstacles to the implementation of the equity incentive in China.The gradual improvement of the relevant laws and regulations of the equity incentive provided guidance for the implementation of the equity incentive in China.The equity incentive gradually became an important part of the incentive mechanism of the core talents.However,the implementation of equity incentive is not smooth sailing,some companies' equity incentive plan stopped in the middle,and some companies did not achieve the desired effect.How to design an effective incentive plan according to the actual situation of the company is worthy of further study.In this paper,the combination of theoretical research and case analysis is used to evaluate the effect of equity incentive of listed company J in terms of corporate financial performance,share price and corporate talent retention.In terms of financial performance,the Company's operating capacity has been improved after the implementation of the equity incentive,and the operating income and net profit have achieved rapid growth.However,only in the first two periods,the effect of equity incentive is obvious.The growth rate of the business income and profit slowed down in the third period of equity incentive.The company's operating capacity has been improved,but failed to effectively improve the profitability of enterprises.These phenomena show that the long-term incentive effect of equity incentive of J is insufficient.In terms of the company's share price,after the equity incentive to enhance the overall performance of J,the stock price has rise.From the perspective of corporate talent retention,most of the core backbone of equity incentive have retained.The implementation of the company's equity incentive effect is not fully played,in part because its equity incentive program is unscientific: the company performance evaluation indicators are single and low,personal performance evaluation indicators set fuzzy,affecting the incentive effect of equity incentive;the grant price is low,lead to the reducing of enthusiasm of the incentive person;the incentive period is short and the unlocking ratio is set unreasonable,which is contrary to the long-term mechanism of equity incentive;the company does not have a reserved stake,which is not conducive to attract more talented people.In this paper some suggestions are offered to solve these problems.It is hoped that through the research of this paper,it can improve the rationality of the equity incentive scheme of J,so that the company can make better use of equity incentive to promote long-term development,and this paper also provide reference for the implementation of equity incentive for small and medium-sized private listed companies in China.