A Case Study Of Stock Option Incentive In H Company

Equity incentive has more prominent role in the long term incentive,which can really avoid short-term behavior in corporate management,the management will focus on the long-term sustainable development of the company,so it is regarded as the treatment of listed companies "principal-agent contradiction effective method.At the end of 1880 s,the equity incentive has a large area in the western developed countries at the same time,the result is really good.In contrast,domestic companies in the early 1990 s began to understand and use equity incentives.The effect of equity incentive of Listed Companies in China,can find the particularity of our equity incentive,supplement and improve the existing equity incentive mechanism,and optimize the corporate governance structure further more,improving the business efficiency,and making the shareholder profit maximization.In this paper,the H company is one of the leading companies in the home appliance industry,which has a good growth in the household electrical appliance industry.In four years,the company has implemented the three equity incentive plan.Therefore,it is of practical significance to analyze the application of equity incentive in H company,which can provide experience for other companies.This paper uses the method of case analysis,the implementation of equity incentive plan earlier H company as the research object,the theories related to the equity incentive and value as the basis,elaborated the actual situation of the company’s equity incentive application,and then from the change of operating performance,incentive on the three angles of reaction and the market reaction as the research breakthrough the effect of the implementation of the equity incentive plan,the result is actually H company equity incentive plan implementation is a positive effect,its overall performance is better,and achieve the established performance targets.After the implementation of equity incentive plan,more fully mobilize the enthusiasm of the operators,to retain the core technical personnel,and promote the improvement of the company’s performance,enhance the value of shareholders.Therefore,the equity incentive plan of H company has referential significance to the equity incentive plan of the home appliance industry.The incentive plan of H company through equity research,draw the following conclusion: first,equity incentive as a long-term incentive mode,has been applied in the enterprise is more and more widely,through equity incentive can bring for the enterprise to improve the performance,make the enterprise healthy steady development;second,China’s equity incentive the plan of setting up and implementation aspects of the lack of experience,the introduction of equity incentive for a short time,it is inevitable that there are some omissions.Therefore,necessary to raise the standard of performance,extend the validity of incentive plans and to strengthen the supervision and management of the company in the subsequent process of implementation;third,according to H’s research on the implementation of equity incentive effect,summed up some of the available reference other intends to implement the equity incentive plan of listed companies.Overall,the implementation of equity incentive plan,effectively avoid the executives to increase short-term financial behavior,the core competition ability of the company,give full play to its long-term incentive effect,suggested that enterprises in the development of equity incentive plan,must be strictly according to their own actual situation,including the selection of reasonable incentives,performance index,optimization of the exercise set select the appropriate incentive object,in order to achieve the purpose of improving performance.