The Design Of M Company's Equity Incentive Plan

As a long-term incentive mechanism to attract and retain core talents,equity incentive has been proved by many scholars.So far,many GEM listed companies have implemented equity incentives,and the results are good and bad.There are many reasons for this.The implementation of equity incentive,according to the company's own situation,should be designed to suit their own plans,copy the equity incentive scheme of others,may be an important factor that the plan did not produce due effect.Therefore,the design of the equity incentive scheme should fully consider the situation of the company and tailor the clothes to obtain the desired incentive effect.This article introduces the theory of equity incentive,analyzes the basic situation of M company,and obtains that there are current situations such as high competitive pressure in the industry,low profit margins,low return on project receivables,and poor cash flow.In terms of staff motivation,there are problems such as single incentive mechanism,insufficient incentive strength of core personnel and the lack of continuous incentive effect,so as to demonstrate the necessity of implementing equity incentive in Tianjin Film Technology;Then from the external support of state policy,the internal support of the company and the GEM listed company equity incentive experience data support,three aspects demonstrate the feasibility of implementing equity incentive;On the basis of this,a set of feasible employee equity incentive schemes was designed for M company.The characteristics of the company's industry,equity structure,personnel structure,and company's financial situation were fully considered in the design.Based on the experience of equity incentive scheme of GEM,which has already implemented equity incentive,we take its essence and discard its dross to reflect the rationality of equity incentive design.It is hoped that it can provide reference for the implementation of equity incentive scheme for M company.