Study Onequity Incentive Of Enjoyor Co.Ltd

As a long-term incentive mechanism,equity incentive has been widely used in many countries with more mature market economies,and also as a long-term incentive to solve the problems of principal-agent,it is effective in stimulating the enthusiasm of the staff.There are many successful cases in improving the performance of the business.Because of this,many domestic enterprises have begun to follow suit,and actively introduce the incentive.Although China began to adopt the equity incentive in the late nineties of last century,which is significantly later,its pace of development in China is obvious,especially in the GEM market,it is quite rapid.It can be said that equity incentive is becoming a more popular means of enterprise incentives nowadays.However,due to national conditions and cultural differences,there are still some problems,which can only be solved through continuous exploration and practice by domestic enterprises.In this paper,the study is made with the method combining theory and practice,taking the equity incentive of Enjoyor Co.,Ltd.shares as a case.So as to discover what is worth learning and what are the shortcomings during implementation of equity incentive process of a typical GEM listed enterprise.Through the analysis of questionnaire and interview type combining the enrollment and resignation etc.data analysis,it is found that staff incentives have achieved good results,and their enthusiasm has been improved;Combined with the enterprise's financial data analysis,the enterprise's financial situation in all aspects is of good development.Therefore,equity incentive plan of Enjoyor Co.,Ltd.shares plays a better incentive to enhance the enterprise's performance.Of course,during the implementation process,there are still some problems such as a small coverage,a less quantity granted,too single incentive method and incentive condition indicator,which are needed to be improved in further practice.This paper argues that equity incentive,as one of the important incentives,can solve the principal-agent problem theoretically,motivate employees to work hard and improve their performance.However,whether managers have good management ability,whether the corporate governance structure and system is perfect,whether the capital market is mature and efficient,and whether the legal guarantee is sound etc,all these will affect the implementation effect of equity incentive.Therefore,in order to maximize the role of equity incentive,retain talents,motivate talents and improve business performance,enterprises still need to design and implement equality incentive according to their own development conditions and external legal system environment to truly exercise its effectiveness.