Case Study Of W Company's Equity Incentive Plan

The method of employee motivation has a lot of kinds,such as material incentive and non-material incentive method,equity incentive as a new employee incentive method is mainly to improve business performance,attract talent and retain talent,so it is also called golden handcuffs incentive method.In recent years,more and more listed companies and the quasi listed companies in our country began to use equity incentive to achieve the long-term development strategy of the enterprise,the equity incentive have many different patterns,design equity incentive plan also are not identical.Different enterprise nature often reflects the different characteristics.Due to China starts late,many theoretical experience are summarized in practice,so many enterprises still exist problem in their equity incentive scheme.In this paper,the selection of the gem W company as the research object,is mainly to research the gem equity incentive problems that exist in the implementation plan.Chose the gem as the research object have the following reasons: First of all,the gem companies focused on innovative and high-speed development-oriented high-tech enterprises,the demand for talent is very urgent,so more and more of the gem companies began to promote development by equity incentive,the number of the gem companies implement equity incentive will continue to increase in the future;Secondly,the gem companies have many problems in the process of implementation,such as because of the excessive enthusiasm of gem,it's easy to produce bubble phenomenon,market effectiveness is poorer,itis extremely unreasonable for companies to set the strike prices,even become the equivalent of "welfare".From the related theory of equity incentive,this paper briefly expounds the equity incentive mode and other basic knowledge,analyzing the present situation and problems of the life cycle of W company,will be convenient to choose appropriate equity incentive mode and put forward effective opinions;In view of the equity incentive two objectives,performance and talent,I willanalyze performance through the financial indicators and personnel changes through non-financial indicators to study W company whether the effect is obvious after the implementation of equity incentive;Finally,through the shortcomings,I put forward the better optimization scheme and feasibility opinions.Case study shows that in the process of the implementation of equity incentive there are still some problems in our country,which makes some enterprises incentive effect is not obvious,and even some enterprises use the equity incentive to issue “welfare”to executives.So when the enterprises design the equity incentive plan,they should combine its own development to design a scientific planand consider the industry development prospects and marketchange rule.So when we formulate the corresponding data index,it can be more reasonable,it also expands the effect of the equity incentive.Studies have also shown that the internal corporate governance environment and external environment for the implementation of equity incentive plan of the enterprise has a certain influence.In order to ensure the effective implementation of equity incentive,we should also pay attention to build a reasonable internal structure and a good external capital market in the future.