Research On The Effect Of Equity Incentive Plan Of Miteno Co.Ltd

With the rapid development of the national economy,excellent enterprises in China are emerging.Facing the increasingly fierce market competition environment,enterprises must maintain flexible adaptability to adapt to the changing economic environment and enhance their competitiveness.The development of an enterprise can not be achieved without the efforts of the upper and lower employees.Fully mobilizing the enthusiasm of employees,making plans for enterprises and contributing to strength is a necessary condition for the improvement of competitiveness of enterprises.However,as the modern enterprise has the characteristics of the separation of ownership and management,there are inconsistent interests between shareholders who focusing on value maximizing of company and managers who focusing on there own interests and personal development.Some managers are easy to deviate from the principle of enterprise value maximization,and lead to the failure of improvement of enterprise operation efficiency,and produce a series of principal-agent problem.In order to alleviate the principal agent problem,modern enterprises usually use equity incentive plan to reward core employees,and try to enhance their impact on employees by holding equity,so as to narrow the relationship between shareholders and managers.However,in the process of the implementation of equity incentive,there are various problems that lead to the ineffectiveness against equity incentive.Based on the principal-agent theory,two-factor theory as the theoretical foundation,this paper takes the whole process of the implementation of Miteno Co.equity incentive plan as the study case,affirms the effect of keeping core human resources and improving the technology through analysis of the reason and effect of carrying out equity incentive plan.However,we also found certain limitations about the design of the Miteno equity incentive plan that lead to the inefficiency against effect persistence of the incentive plan,and to the lack of comprehensiveness of the improvement of company comprehensive ability.In order to solve the problems,this paper puts forward suggestions on increasing elasticity assessment indicators,adding comprehensive index setting,so as to improve the comprehensive effect of equity incentive.