Research On The Equity Incentive Effect And Its Improvement Of A Co.,Ltd.

The equity incentive system,as a effective means of alleviating the contradictions between the owner and the operator,is increasingly being adopted by domestic and foreign listed companies.The equity incentive system takes the long-term incentives as the means,the goal of shareholders and operators tend to be consistent,so owners and operators will together achieve the goal of enterprise value maximization.Study of equity incentive system begun in the mid-nineteenth century in the US.Chinese scholars in the nineties of last century begun to study the equity incentive system.In recent years,many of companies in China have begun to implement equity incentive plan.However,our country has only studied in equity incentive system recently.The theoretical research is not fully mature and the capital market is not perfect.Moreover some companies don't take their own governance structure and development situation into account,only to follow suit to implement equity incentive plan.Therefore,the implementation of equity incentive plan of some companies do not achieve the desired results.For example,short-term management of some companies can not achieve long-term incentive effect,and because of the unreasonable plan design equity incentive system have to cancel in the process of implementation,etc.At first,this paper introduces the related concepts of equity incentive system and main models of equity incentive.Second the paper summarizes the principal agent,human capital and incentive theory to lay the theoretical foundation for this article.Next the paper select a company as a case to analyze.Through analyzing all elements of the implementation of equity incentive plan of the company,I summarized its reasonable aspects and unreasonable aspects.Finally,the case of the company's equity incentive program help to improve the scheme.The paper analyzes the effect of equity incentive and makes an improvement to the scheme.Hoping to provide reference for the future implementation of equity incentive.Companies design equity incentive need to combine the company's internal and external factors which affect the incentive plan design.In order to better play the long-term incentive incentive effect,then to improve the value of the company.