Equity Incentive Case Study Of Company Y

With the rapid development of market economy,the organizational structure of enterprises changes,and the principal-agent problem caused by the separation of ownership and management right also emerges.Nowadays,enterprises are more and more aware of the necessity of human capital for the sustainable development of enterprises,so that enterprises make more efforts to retain talents and encourage employees to work actively.Many companies in developed countries have adopted equity incentives to help them generate income and gain profits,retain the necessary talents,and stimulate the vitality of the enterprise,as to maximize the value of the enterprise.But in China,equity incentive has not been developed.Although many listed companies in China have implemented equity incentive in recent years,not all the plans set by companies implementing equity incentive have achieved the expected incentive effect.Due to the great differences between China and western countries in economic system,market and corporate governance system,blindly applying the equity incentive method adopted by western enterprises will lead to insufficient incentive effect,failure to achieve the goal set by enterprises and even reverse the development of enterprises.Therefore,it is of great practical significance to study how equity incentive can promote the development of enterprises correctly and effectively when the research on equity incentive in China's capital market and on equity incentive has not been perfected.At first this article summarizes the basic theory of the equity incentive related,made a summary about the present situation of domestic and foreign research level,use the case study method,selection of pharmaceutical companies Y company as the research object,according to the restricted stock incentive plan,implementing,after briefly describes the background factors are analyzed,and main content of incentive scheme and the selection before the implementation of incentive to the incentive scheme to implement two years after the completion of this period,compared with the industry average data,mainly analyze the company performance brought by the incentive effect,finally sums up the problems that exist in the setting and implementation and puts forward the corresponding improvement Suggestions.Based on this case study,the inspiration of the implementation of equity incentive for China's listed companies was gained.At present,there are still many imperfections in the establishment and implementation of equity incentive in China's listed companies,and the study on the effect of corporate incentive needs to be supplemented and improved.This paper puts forward some Suggestions from the aspects of equity incentive scheme design and internal management of the company,in the hope of providing some reference for the enterprises to implement equity incentive.