Case Analysis Of Equity Incentives Of Zhejiang Huace Film&TV CO.,LTD.

Equity incentives are long-term incentives that link executive performance to company performance by granting managers equity.This mechanism links the interests of the operators and the company,reduces the conflict of interest between the two parties,relieves the principal-agent problem to a certain extent,reduces the short-sighted behavior of the operators,and has certain practical value.Since the official introduction of the equity incentive system in 2005,China's capital market has gradually developed,and related systems have gradually improved.More and more companies have begun to implement equity incentive plans,and the industries involved have gradually increased.At the same time,as the living standards of residents improve,people's demand for cultural products is gradually increasing.The film and television industry has developed rapidly in this context.The film and television industry is a knowledge-intensive industry,and human resources are an important resource for its development.Therefore,some film and television companies have begun to implement equity incentive plans in order to bind core talents.In this context,this paper selects Huace Film and Television Co.,Ltd.,which is the earliest implementation of equity incentives in the film and television industry,as the research object,analyzes the specific content,implementation situation and implementation effect of the two-phase incentive plan,and evaluates the gains and losses of its program design.Get inspiration and give advice.This paper mainly uses the case analysis and comparative analysis methods to vertically compare the implementation background,implementation process and implementation effect of the two-phase equity incentives of Huace,and horizontally compare the content and effect of the equity incentive plan of Huace and Huayi Brothers.,evaluate the design of equity incentive plan of Huace.It can be found that there are some differences in the two-phase equity incentive plan of Huace.These differences are related to the company's current operating conditions,external environment,and incentive objectives.The second-phase incentive plan has been significantly improved on the basis of the first-phase plan,but there are also some problems.The equity incentive schemes of Huace and Huayi are also different in design.The incentive schemes of the two companies have different effects.This difference reflects the concerns that some film and television companies need to pay attention to when designing an equity incentive plan.Based on the results of horizontal and vertical comparison,this paper concludes that the advantages ofHuace's equity incentive plan are: the launch time is more reasonable,the incentive range is relatively wide,and the incentive model is gradually improved.The disadvantages are: the assessment indicators are not perfect,and the incentive costs are relatively high,the incentive period is relatively short.Based on these,this paper summarizes the enlightenment of the case to other companies: carefully choose the timing of incentives,moderately expand the scope of incentives,and flexibly choose the incentive model;and give some suggestions: improve the assessment system,pay attention to incentive costs,and extend the incentive period.When designing an equity incentive plan,film and television companies need to flexibly choose the appropriate solution based on their own actual conditions and existing experience.