Research On Equity Incentive Strategy For Core Employees Of W Company

Equity incentives originated in the United States in the 1850s of the 18th century.They are used to relieve the agency problems of separating the ownership and management rights of modern enterprises.Modern enterprises are increasingly used as a magic weapon to attract talents and retain them.However,due to the fact that China has introduced equity incentives for a short period of time,there are still many different opinions on the implementation of equity incentives in the academic community.This paper first reviews the development history of incentive theory,several important types of equity incentives,and scholars’ literature on the effects of equity incentives on corporate performance,talent retention,and innovation.Then,in combination with theoretical knowledge,the three key employee equity incentives implemented by W company in the medical information industry were introduced in detail from the design of the project to the implementation process.From the individual and company levels,qualitative analysis of case studies,interviews,and qualitative financial ratio analysis were used.The law provided an in-depth analysis of the preliminary results and existing problems of the three core employee equity incentive plans implemented by W’s pilot project.The study finds that there are two major problems in W company’s equity incentive:(1)The company’s equity incentive plan has poor employee performance,high-end talent introduction,company operation ability,and debt repayment ability incentive effect.(2)The corporate environmental and human resources policies supported by the company’s equity incentives have affected the actual effect of equity incentives.Finally,aiming at the problems existing in W company’s equity incentives discovered in the research process,suggestions for improvement measures are put forward in three aspects:(1)The optimization of equity incentive plans is the core to guarantee the effectiveness of equity incentives.(2)Supporting optimization of the company’s governance environment and human resources policies to provide a good supporting guarantee for equity incentives.(3)Continuously improve the implementation path of equity incentives to ensure that the entire process of equity incentive implementation complies with regulations and is effective.The research results of this paper will help provide reference experience for other companies of the same medical information industry to implement equity incentives,and make it possible to design a more reasonable equity incentive plan based on their own characteristics.And provide some reference suggestions for the development and expansion of equity incentive plan in our country.