The Implementation Of The Equity Incentive Plan For KeHua Biological Staff And Its Effect

The separation of the two rights of modern enterprises leads to the emergence of the agency problem.China's state-owned listed companies play a very important role in the national economy,but their special double agency relationship and lack of long-term incentive and restraint mechanisms have hindered their development.Equity incentive is an effective way to deal with long-term incentive problems.The system has been widely used in many western countries.In China,the practice of equity incentive is relatively late.This system has been widely used by state-owned listed companies with the formal promulgation of the implementation of equity incentives for state-owned listed companies(domestic).However,the problems of corporate governance structure and the appointment of senior management make it easy for the design and implementation of program to be controlled by management,resulting in moral hazard and unfair distribution.It is the focus of the government and the academia that China's state-owned enterprises can produce a good incentive effect on the implementation of the equity incentive system.Under this background,this paper will focus on how KeHua Bio-engineering through the implementation of equity incentive to alleviate the conflict of interest between managers and operators,to establish a long-term effective mechanism of incentive and restraint,and deepen the reform of state-owned enterprises in an important step on the road,has some practical significance.Based on the theory of equity incentive,this paper studies the mechanism of influencing factors of equity incentive by combining normative research and case study.This paper holds that the effect of equity incentive is different due to the different actual situations of enterprises,and the internal and external environment is different.So the applicability of equity incentive is different.There are also differences in scheme design,and the effect is different in the implementation process,which ultimately leads to different results.To choose equity incentive,enterprises should fully understand,investigate and analyze the internal and external factors.These factors will affect the rationality and effectiveness of the three aspects of selection,design and implementation,and these three aspects will ultimately decide the implementation effect of equity incentive.This paper consists of six parts.The first part is the introduction,which explains the background and significance of the research,the domestic and foreign research review,the research framework and methods,and the innovation and deficiency of this paper.The second part makes a general discussion on the equity incentive in China.This paper introduces the concept,theoretical basis,model and contract elements of equity incentive,and analyzes the current situation and characteristics of the implementation of equity incentive in China.The third part is the introduction of the basic situation of Shanghai KEHUA BIO-ENGINEERING bioengineering Limited by Share Ltd(hereinafter referred to as KH bio)and the background and motivation of the implementation of the equity incentive plan.The fourth,fifth part is the core of this article.It introduces the design and implementation process of the case enterprise equity incentive plan,as well as its effect.The sixth part is the inspiration and suggestions,so as to be able to play a certain guiding significance to practice.Although the stock incentive mechanism of the state-owned listed companies is constantly perfected,there is still such or that.The problem of sample is not satisfactory in practice,such as the stock source of equity incentive is limited,the design and implementation of equity incentive is controlled by management,moral hazard is easily triggered,unfair distribution is caused,and long-term incentive effect is not obvious.Leading incentive in state-owned listed companies there are many reasons for these problems in the implementation of equity,such as the largest shareholder vacancy lead managers equity incentive equity incentive schemes,the performance appraisal system is not scientific,lack of competitive occupation manager market,equity incentive and supervision mechanism,weak efficient capital market etc..Through the practice of stock incentive system in western developed countries,we can still get some experience,such as cautiously using stock option plan,implementing pluralistic equity incentive mode,and combining equity incentive with other incentive modes.Different state-owned listed companies also have their own characteristics,and the state-owned listed companies should also have their own emphasis in the design and implementation of equity incentive schemes.