Research On Design And Application Of Equity Incentive Plan In Platform Chains

The separation of ownership and operation gives birth to the problem of principle and agent,which can be solved by equity incentive plan.Since the 1950s,equity incentive plan has been emerged in the western countries,and has been developed into a way to solve the principal-agent problem,which is feasible,and widely used in modern enterprise.At the same time,along with the emergence of domestic venture enterprises,a new kind of startups named platform chains which has the characters of both platform-based firms and chains,has achieved scale advantage quickly through a unique model of development.However,in the process of raid development,as the peculiarity of its development model and the particularity of its business unit agent role,there inevitably appeared the problems of the principal-agent,incentives and other aspects.Based on the background above,this paper will focus on the characteristics of platform chains to do the research on design and application of equity incentive plan,which is based on the case of the equity incentive plan in ABC company.This article can provide certain reference in the process of equity incentive plan design and application,which has a certain theoretical and practical significance.Firstly,this paper expounded the principal-agent theory,human capital theory,and incentive theory,which are related with the equity incentive,and the network externality theory and game theory,which are involved in the equity incentive plan design of the platform chains.Then,this paper summarized the domestic and foreign scholars on the research of equity incentive,and introduced the platform chains' characteristics and the problems they are facing.In the following part of this paper,according to the characteristics of the platform chains enterprises and the particularity of business unit agent role,we determined the certain incentive mode through the platform's stage which is based on the relationship between the marginal revenue and marginal investment.Through the analysis in the condition of incomplete information dynamic repeated game model between the platform owner and agent business units,this paper determined the authorized quantity and the executive price.In the last,based on the case of ABC company and its equity incentive plan,this article did the application research on ABC company equity incentive scheme,and combined with its characteristics of ABC company,evaluated its advantages and disadvantages and the implementation effects.The result shows that,the equity incentive plan design plays a positive role to the platform chains' organization performance.The equity incentive plan design should be based on the characteristics of the plat form chains enterprises,comprehensively considering from the selection of incentive object,quantity,incentive mode,and the executive price,to ensure that the main goals in various stages to achieve,and satisfy the utility maximization on both sides of the platform owners and agents at the same time.Hope that this article can provide some reference for platform chains in optimizing the equity incentive plan and improving the effect of incentive.