Case Study Of Kunming Pharmaceutical Group Corporation Rolling Restricted Equity Incentive

Equity incentives have been around for a long time.What kinds of options,models,proportions,and assessment indicators of listed companies need to be carefully considered.It depends not only on the different stages of the company's life cycle,but also on the company's industry field,capital level,and management model.This article through detailed and detailed research on the equity incentive program implemented by the Kunming Pharmaceutical Group found that if and only if the chosen model adapts to the company's own development characteristics can it play the best incentive effect.Equity-incentive equity incentives originally originated in the United States in the 1950 s and 1960 s.Since their implementation,they have been regarded as important for resolving principal-agent issues,reducing owner-agent costs,and resolving target interests.One of the means.At the same time,it also helps to maintain or increase stock prices,maximize the potential of human resources,and minimize supervision costs.Later,in the 1990 s,China gradually adopted this mechanism,and equity incentives began to enter the vision of many domestic business owners.Affected by various factors and constraints,domestic companies started equity incentives relatively late,and the incentive effects are not all satisfactory.The pharmaceutical industry enterprises are the first and the most important force in China to carry out the equity incentive test.Although there are successes and failures in this,some companies' practices are worth learning from,including many representative programs and plans.After the split share structure reform,related policies and regulations were continuously introduced,and more companies chose this approach.However,many factors still affect or even weaken the effect of equity incentives: if the company is in a hurry to achieve success,the incentive model is not suitable for its own development status;the choice of incentive targets is not correct,the process of granting or unlocking is not transparent,and the performance assessment indicators and unlocking conditions are not appropriate.This article draws lessons from the related theories of reference finance and comprehensively uses the comparison method,case analysis method,event research method and financial index analysis method in the same industry.It is concluded that the rolling stock option incentive scheme and the market value of the company can promote each other to some extent.So far,China's pharmaceutical manufacturing companies have conducted a large number of equity incentives,which are mostly in the form of restrictive stocks,but because most of their program designs are too homogenous or have not been designed and implemented according to the actual situation of the company,the final results Good and bad.The Kunming Pharmaceutical Group and the Jianmin Group under the Holley Group have also conducted equity incentives.The design scheme adopts the rolling restricted stock incentive model.The unique scheme design and active program effects have been universally recognized and followed in the society..Combining the practice of equity incentives in China at this stage,in particular using the rolling restricted stock rights incentive of Kunming Pharmaceutical Group as an example,explore the model suitable for listed companies in China.The general outline of this article is as follows: The first part is the introduction.The background,significance,literature review,research methods and content,possible innovations,etc.of equity ownership incentives in equity China are briefly introduced.The second part is a brief introduction of the case.It briefly describes the design and implementation process of the two equity incentive plans of the Kunming Pharmaceutical Group,including the research object,assessment indicators,evaluation criteria,granting process,and unlocking and implementation,and will implement the two phases of the plan.Compared.The third part is the case analysis,first introduced the relevant theoretical basis,and the concept of confusing;Secondly,the brief introduction of Kunming Pharmaceutical Group,including development history,main business,profit sources,etc.;Finally,from the market performance,financial indicators In terms of non-financial indicators,several different representative data and indicators were selected for analysis,including the use of event research methods and case analysis methods.The fourth part is to put forward conclusions and recommendations based on this,and strive to provide some reference value for other listed companies to carry out equity incentives.