Research On The Problems And Countermeasures Of Equity Incentive In Luzhou Laojiao

Equity incentive as a long-term incentive method,though granting equity to important employees of the company,encouraging company employees to participate in company operations with a more positive.Employees try their best to improve the value of the company,to obtain the corresponding income and bear certain business risks.The Application of Equity Incentive Mechanism can reduce commissioning agency costs,maximizing the interests of owners and operators.If equity incentives can be used properly,it can increase the enthusiasm of management and provide positive incentives;conversely,it will lead to moral hazard,and senior executives may choose earnings manipulation to improve corporate performance and realize personal interests.The result will have a negative impact on the businessEquity incentive first appeared in Western countries,and was generally applied to all major listed companies,and achieved a certain positive role.However,it appears late in China's listed companies,and its development is slow.There is generally a situation where the effect of incentives is not as expected.What is the reason for this situation?What are the problems with the design of equity incentive?How can we make equity incentive play a due role in our listed companies?This article takes a typical state-controlled liquor company,Luzhou Laojiao,as the research object.First,it introduces the content and implementation process of the Luzhou Laojiao Equity Incentive Plan,analyzes the effect of the equity incentive implementation,discusses the problems in the incentive plan and causes the problems,and the countermeasures to solve the problems are proposed,and attempts are made to provide reference for the implementation of equity incentives for other state-controlled listed companies through the analysis of the case of Luzhou Laojiao.