The Optimization Research On The Equity Incentive Plan Of S Group Company

The Modern Equity Incentive Mechanism was designed and introduced by the American Fischer Company in the 1950 s,and later was introduced to China in the 1980 s.After going through both the desolation initially and the boom continuously in recent years,the equity incentive has been characterized by normalization,specialization and flexibility.Based on short-term incentives,such as material incentives or spiritual incentives that are commonly used by enterprises,the equity incentive develops as a long-term incentive method that combines both material incentives and spiritual incentives.The equity incentive makes the interests direction of the owners and operators converged,which,to some extent,eases the principal-agent relationship.By changing the role of employees in the enterprise,those employees begin to own the company's equity and participate in the sharing of corporate profits as shareholders,which greatly motivate them to make long-term struggles with the future benefits of enterprise development.This paper,by taking the example of S Group Company Stock Option Plan as the research object,comprehensively analyzes the employee career development system,talent selection system,compensation management system,performance management system,corporate culture construction of S Company's human resource system from the perspective of human resources that are involved in the various elements of equity incentive plan.Also,this paper tries to find out the existing problems and points need to be improved through the analysis of the incentive objects,incentive tool,incentive quota,authorization frequency and vesting conditions in the equity incentive plan.Moreover,taking it as a starting point,this paper gives optimization suggestions to the selection criteria of incentive objectives,evaluation methods,combined application of equity incentive tools,arrangements of equity incentive frequency,vesting conditions and exit mechanism and so on,in order to,ultimately,optimize the equity incentive plan for S Group and accelerate the success of the second venture via the perfect equity incentive.The analysis and optimization suggestions of this paper not only have guiding significance for S Group Company of optimizing the equity incentive plan,but also provide some reference to those enterprises who have implemented or are about to implement equity incentive on systematic thinking of its equity incentive plan.The effect of equity incentive plan is not only related to external factors such as economic environment and industry development trend,but also related to the enterprise management level and especially the enterprise human resource management system that are both involved in every factors of equity incentives.Therefore,the perfect human resource management is the basis for achieving good results on equity incentives plan.