Research On The Scheme And Implementation Of Equity Incentive

Equity incentive,as a kind of long-term incentive system,is able to attract,motivate and retain the core personnel.It can also connect the personal interests with corporate ones of the incentive targets,and make employee have the master consciousness,then promote the enterprise and staff grow up together,and finally help enterprises to achieve a long-term goal of steady development.Equity incentive was originated from the United States in the 1950 s,for it can solve the problem of principal-agent problem in modern enterprises,which prevailed in the western countries from the 1970 s and 1980 s.Equity incentive in China started relatively late,which was introduced in the early 1990 s.After the reform of the equity division in 2005,many Chinese enterprises began to implement equity incentive.Since 2009,supporting policies about equity incentive have been continuously supplemented and refined,and from that time equity incentive has become more and more perfect in China.The essay took the equity incentive of Joyware as the research object,and firstly introduces the concept and related theories of equity incentive,and then reviews the relevant literature on the effect of equity incentive implementation and the scheme.Next,introduce the case and analyze it.The first step is to analyze the implementation background of the case.Based on the feasibility and necessity,the motivation of the company's equity incentive is studied.Secondly,assess the rationality of the equity incentive,which is one of the important factors affecting equity incentive effect,including incentive mode,incentive objects,etc.Thirdly,analyze the implementation effect of the case,which start with the short-term market reaction and long-term performance.The event research method is used to analyze the market reaction before and after the launch of the equity incentive plan.The evaluation of long-term performance started with financial indicators,which including profitability capacity,development capacity,etc.Besides,non-financial indicators can also be used to evaluate,which including employee's educational structure,enterprise's innovation ability,etc.Finally,we draw conclusions and came up with suggestions,so as to provide references for the next equity incentive plan of the Joyware,and provide references for other listed companies to implement equity incentive as well.