Research On Equity Incentive Status And Countermeasures Of Private Enterprises

With the development of China's capital market and the expansion of enterprises,private enterprises are increasingly demanding professional managers.Professional managers are gradually appearing,and the ownership and management rights of enterprises are separated.In order to reduce agency costs and prevent managers fr-om damaging shareholders'interests,many private companies adopt equity incentives.As a management system,equity incentive has been applied in global corporate management.The introduction of equity incentive mechanism in China is relatively late,but it has developed rapidly in recent years and become a subj ect of great concern.This paper elaborates the equity incentive and its related theories,and uses the method of comparative analysis and case analysis to analyze the effect of L company's equity incentive implementation from the aspects of profit,debt repayment,operation and R&D.It is found that after L company implements equity incentive,its operating performance has indeed improved compared with before.But there are also some problems,such as complex ownership structure,too low exercising conditions,too short exercising period,too simple design of individual performance indicators,and too centralized equity incentives for management.In the future,the company should fur-ther optimize the ownership structure,improve the design of assessment indicators,diversify incentive assessment indicators and rationally determine the scope of incentives,which may achieve more significant incentive effect.The purpose of this study is to improve the realization of equity incentive in private enterprises.In view of the problems in equity incentive,we hope that through the implementation of a series of targeted countermeasures and suggestions,the equity incentive system of private enterprises can be effective,and the core human capital of enterprises can be effectively encouraged and restrained,so as to achieve the strategic obj ectives of the development of enterprises.