A Case Study Of Equity Incentive Based On Eve Energy

Equity incentive system as a good incentive mode,it granted to the operators through equity instruments.The operators and the shareholders share the company's performance results together,in order to achieve the purpose of incentive and constraint.It can also effectively reduce the agent risk.Since 2006,the CSRC issued the “measures on the administration of equity incentive the listed company” the listed companies who implement equity incentive system has become a trend.Especially since October 23,2009,the GEM market in China opened,and a lot of companies realized the importance of enterprise human capital,began to implement the equity incentive system.But in the implementation of equity incentive process,both the western countries headed by the United States or Chinese in the implementing equity incentive on the road have encountered many obstacles.Like the Enron event that in order to achieve the exercising conditions,get huge benefits through the financial fraud,and reduce the exercise conditions in order to successfully exercise,and because exercise is not reasonable to terminate the equity incentive plan.Therefore,the process of implementing equity incentive is extremely difficult.In order to make equity incentive plan to play the role of incentives and constraints,the rational equity incentive plan plays an important role.Whether the equity incentive plan accord with the actual situation of the enterprises themselves,the choice of the incentive pattern is scientific,it will affect the equity incentive plan.This paper selected the implementation of equity incentive system Shenzhen GEM listed companies EVE Energy as the research object,combining with the characteristics of EVE Energy of plate and industry,and put forward the purpose and significance of this research.Then reviewed and summarized the literature of the equity incentive at home and abroad,put forward the research methods and ideas according to the characteristics of EVE Energy of equity incentive case,and summarized the theories of equity incentive.This paper briefly introduced the related situation of EVE Energy.Starting from the view of industry characteristics,analyzed the reason why EVE Energy implemented equity incentive plan.Then analyzed the rationality of EVE Energy's equity incentive plan,and hoped the other companies which implement equity incentive can learn the experience and lessons from this research and constantly improve the plan of equity incentive,to have a good result of implementing equity incentive.This paper summarizing the motivation which is similar with EVE Energy,found the Gem enterprisesimplementing equity incentive is to improve the growth of enterprises.In addition,the paper summarized from the incentive model,incentive object,exercise index,the effective period.It also summarized that EVE Energy's equity incentive plan has basically reached the expected effect.Finally the paper put forward the research enlightenment to the enterprise which will implement the equity incentive in the future.It is considered that the rational equity incentive can improve the effect of equity incentive.The rational equity incentive must be combined with the actual situation of the enterprise and industry characteristics.