The Research On Application Of Stock Option Incentive In Company A

Talents are core resources of enterprise development.Equity incentive is an important talent incentive means,which attracts and keeps excellent entrepreneurial talents through making core managers and backbone employees hold shares,promotes enterprises grow bigger and stronger,and is of important significance for enterprise development.Therefore,it is of important theoretical and realistic significance to explore equity incentive schemes which are suitable for the actual situations of enterprises.After implementing equity incentive,Company A has achieved better effects.The writer,as the participant and beneficiary of equity incentive of Company A,witness the implementation of equity incentive.Through analyzing the application of stock option incentive in Company A,The writer summarized the experience and deficiencies,offer suggestions for implementing stock option incentive,and provide a reference to listed companies for better implementing stock option incentive.This paper mainly from the endogenous perspective,researching equity incentive contract structure and takes equity incentive as whole that consist of many factors.Explore the relationship between the application motivation,design and performance of stock option.The key elements of the stock option incentive program include incentive object,stock source,quantity allocation,time factor,exercise price,exercise condition,financial estimate and so on.To examine how these key elements affect the implementation effect of Company A's stock option incentive and what factors will influences the formulate of these elements.This paper uses the case analysis report written and the full text is divided into five chapters.Among them,the first chapter is introduction.The second chapter discusses the relationship between stock options and performance from a theoretical perspective.It mainly includes overview of equity incentive,overview of stock option,and stock option pricing model,and emphatically analyzes the key elements and influencing factors,which affect the implementation effect of stock option incentive.This lays the foundation for the application of subsequent stock option incentive.The third chapter to the fourth chapter is the focus of the paper,and is also the empirical research part of this paper.The third chapter mainly introduces the background and motivation of Company A's application of stock option.The fourth chapter discusses the design and effect of Company A's stock option,which mainly includes the formulation of stock option incentive program's key elements of Company A,the analysis of the effect,the major contributions of the application,the limitations of the application,the suggestions on improvement.The fifth chapter is conclusion and suggestion.First,this part summarizes the conclusions of this paper.Second,it makes suggestions.Through refining main problems of Company A's stock option incentive process and summing up the solution to these problems,The writer wish this paper provide other enterprises with reference and help.This is also the focus of this paper.Finally,The writer make a prospect and an approach to further development.