Research On The Optimization Of Equity Incentives For Core Employees Of JW Company

Equity incentive in our country was originated in the 1990s.With the development of capital market and the promulgation of relevant laws and regulations,the development of equity incentive is tending to standardize and perfect.As a kind of long-term incentive measure,by granting the operators for a certainly proportion of stock rights,equity incentive has achieved the common undertaking of synergy and risk of the interests of all owners and operators.It has great significance on solving the principal-agent problem,improving the corporate governance structure and promoting the company's performance.The studying object,JW Company is a high-tech enterprise operated ceramic membrane separation technique application mainly.In 2009,the company made equity incentive by the way of stock right transfer on senior executive,key technical staff and business backbone.The operating performance of company has steadily ascended.The internal and external environment of the company has great changed in recent years.The operating performance was declined and core staff ran off and employee satisfaction was reduced.In early 2017,the company listed on the GEM and welcomed new opportunity for the company development.At the same time,it was more urgent for the incentive demand of core staff.Based on such a background,guided by Principal-agent Theory,Synthesizing Theory Model and Human Capital Property Right Incentive,this article analyzes the current situation and existing problems and causes of equity incentive of core staff of JW Company and puts forward the optimized overall thinking of equity incentive of core staff and designs the incentive object,incentive mode,incentive time limit,executive price,exercise conditions,funding sources,adjustment mechanism and other factors in first phase of equity incentive plan and gives safeguard measures of optimization scheme.This paper concludes that the GEM listed companies implement equity incentive for the core staff is necessary.Through the establishment of a set with the company development strategy,development stage,incentive object demand of equity incentive plan,companies balance the incentives and constraints for key employees,and ultimately realize the long-term development of enterprises.