Design Of Ningbo Fangli Technology Co.,Ltd. Employee Equity Incentive Plan

Ningbo Fangli Technilogy Co.,Ltd-medium scale domestic plastics machinery manufacturing enterprise,at the beginning of this century has experienced the rapid development,but in recent years the company has entered a period of stagnation,and has gradually declining trend,flow rate of the core staff is rising,staffs lack sense of responsibility,cohesion of the enterprise declines,it is urgent to adjust internal mechanism of enterprise.Under the circumstances,equity incentive will be big help to solve this problem.To improve the management level of enterprises,increase their competitiveness and cohesion,it is necessary to start from the enterprise system itself.With the gradual expansion of enterprise scale,the ownership and management rights are getting separated,that formed a significant feature of modern enterprises,in this case fully unified interests of owners and operators can only mobilize the staff's sense of responsibility and enthusiasm to the maximum,and promote the development of the company.According to authoritative statistics,among the top 500 companies in the United States,more than ninety percent of the enterprises have taken equity incentive,the executive has,at least,thirty percent of remuneration came from equity incentive.Our country also began to learn from westerns equity incentive in 80 s,and has been applied in the state-owned enterprises at the beginning,and with the development of economy,the equity incentive has been gradually extended to the private enterprises,and achieved good results.By research of the principal-agent theory,human capital theory and incentive theory,this paper fully understands the formation,development and application of equity incentive theory in modern corporate governance,through case analysis to find the often encountered problems in implementation of equity incentive,also combined with China's social conditions,the internal conditions of company Fangli,to formulate restricted stock-stock appreciation rights-virtual stock hierarchical equity incentive plan for senior management personnel and front-line staffs,clearing incentive proportion for different staff levels,scope of employees,types of equity incentive to three levels of staffs,pricing basis,execution schedule,limitation,quit mechanism and etc.,and explaining the reason of plan formulation.Thus help to solve Fangli's problem and provide reference for other similar enterprises.