On The Improvement Of The Legal Mechanism Of Equity Incentive

Since the advent of equity incentives,in the process of attempting to apply it in Western countries,the world has gradually found that it has unparalleled advantages in mobilizing the enthusiasm of company managers and core employees,and achieving the unity of personal values and company values.Western countries have gradually explored a relatively mature legal mechanism through the long-term application of equity incentives.After entering the 21st century,Chinese enterprises have begun to pay attention to the application of equity incentives in the process of gradually moving toward the world.China has also established a relatively complete legal mechanism for equity incentives,providing local experience for the application of equity incentives in the NEEQ(National Equities Exchange And Quotations)market.However,as the NEEQ expands to the whole country and ushers in rapid development,the listed companies are highly dependent on core employees.As a result,equity incentives have developed rapidly in the NEEQ market,and the number of incentive programs has continuously hit new highs.On the other hand,the current legal mechanism does not fit well with the characteristics of the NEEQ market and the listed companies.In the practice of equity incentives,there were problems such as the absence of legal documents,inefficient supervision mechanisms,and the lack of correct guidance.The chaos phenomenon of equity incentives also appeared frequently in the market.It is extremely urgent to improve the legal mechanism for equity incentives in the NEEQ market The NEEQ market needs to explore a set of legal mechanisms suitable for its own market characteristics based on the experience of acquiring mature foreign markets and the local experience of applying equity incentives in China's A-share market.Among them,the most important thing is that the legal system of equity incentives in the New Third Board market needs to be improved as soon as possible,the systematic support should be established for the enforcement of the regulatory authorities and the application of equity incentives for listed companies through the introduction of highly targeted high-level legal documents.The first chapter of this paper introduces the basic concepts of the equity incentives,related theories and historical evolution;The second chapter introduces the current situation of equity incentive operation in NEEQ market,including the history and characteristics of the NEEQ market,the characteristics of listed companies and the status quo of equity incentives in the NEEQ market;In the third chapter,based on the above content,analyses the problems of the legal mechanism of equity incentive in detail.;In the fourth chapter,introduces a study of the mature US securities market,the Nasdaq market,with a view to providing useful experience for the NEEQ market through its analysis;Finally,in view of the problems raised above,combined with the practice of equity incentives in China's A-share market and the useful experience of the Nasdaq market operation,a comprehensive plan for related issues is given.