Research On Equity Incentive Scheme Improvement Of Z Company

The rapid development of the company's management methods and models has resulted in the separation of the company's owners and operators.Agency relationship.In order to reduce the cost of such agency,the company encourages its managers and implements various forms of incentives,of which equity incentives are the most widely used.With the rapid development of China's market economy and the increasingly regulated market environment,policies and legal documents related to equity incentives have been gradually introduced,and the latest "Measures for the Management of Equity Incentives for Listed Companies" has been officially implemented since August 13,2016.The improvement of the legal environment has made it possible for equity incentives to be implemented in Chinese companies.This has also attracted more and more listed companies to try to launch equity incentive plans.However,many companies are faced with the uncertainty of what kind of incentive model should be adopted,how to determine the source of shares and the proportion of incentives,and the equity incentive system is difficult to play its due incentive effect.This article mainly adopts the combination of literature review method and case study method to select Z company as the object of case study.Firstly,this article gives an overview of the background of Z company's stock incentives from the status quo of the development of China's stock incentives,the basic situation of Z company,and Z company's implementation of equity incentives,which shows that the Z company's stock incentive plan is failed,and the main reason for failure is There are problems in the design of the plan;then,in-depth analysis of the specific design of the Z company's equity incentive plan from the six aspects of incentive objects,exercise prices,incentive terms,incentives,exercise conditions,and incentive methods,to explore possible defects in its design.Finally,based on the six elements of stock incentives,this paper proposes some suggestions for the improvement of Z company's stock incentive plan design.From the aspects of stock incentive plan design and implementation of equity incentive measures,a stock incentive system suitable for Z company is constructed.There are two main findings in this paper:(1)Conduct an in-depth analysis of Z company's plan for implementation of equity incentives,summarizing from six aspects:incentive target,incentive quantity,incentive model,term design,exercise price,and exercise conditions.Summarizes the deficiencies in the design of Z enterprise incentive plan;(2)Improve the defects of the Z company's equity incentive plan design,and construct Z company suitable for both from the aspect of equity incentive plan design and implementation of equity incentive protection measures.The equity incentive system provides reference for the listed companies in the same industry to provide incentives for core employees.