Research On The Conditions Of Stock Right Incentives Of Listed Companies

The separation of the two powers in the modern enterprise system has created the agency problem.In order to solve the agency problem,the equity incentive mechanism arises at the historic moment.Equity incentive is a typical long-term incentive system.However,in the follow-up process,the problem of revocation of equity incentive plan has emerged,making the prospect of the implementation of the system shadowed.The reasons for the revocation of the equity incentive plan are mainly due to the unreasonable design of the right conditions made in the early period of the enterprise,which makes the option of the equity incentive cannot be exercised and the restrictive stock can not be unlocked,which leads to the incentive plan can not be carried out.Under this background,it is very necessary to study the exercise conditions of the equity incentive plan.This paper first reviews the relevant literature at home and abroad,summarizes the important factors that affect the design of the right conditions for equity incentive,and briefly summarizes the theoretical knowledge of the status,role and mode of the right conditions in the equity incentive scheme.In the case analysis part,this paper takes Novel as the research object,an d compares the stock incentive schemes of the company for two consecutive periods.The two equity incentive schemes are both the net profit growth rate and the net asset return rate as the right conditions,but the results of the two implementation are quite different.Based on historical data,this paper makes a longitudinal comparison of the main financial indicators of Novel,and makes a horizontal comparison with the average value of the financial indicators in the industry.It is found that in the case of the slow development of the enterprise and the recession of the industry,the Novel still set the unlocked value of the franchise conditions too high.This is the main reason for the failure of the second equity incentive plan.Finally,this paper summarizes the existing problems of the conditions for the establishment of the right conditions for listed companies in China,including the design of the right conditions,which does not conform to the background of the industry development,does not follow the cycle of the enterprise development,lacks the market conditions and so on,and puts forward some suggestions for improvement.We should constantly improve the design of the exercise conditions,ensure the effective implementation of the plan,and achi eve the original intention of encouraging the management and management.