Research On The Motivation And Performance Of The Restricted Stock Incentive In Listed Companies

The significant characteristic of modern enterprise system is the separation of ownership and management rights.Although this mechanism strengthens the specialization of management,it always leads to the inconsistency of interests between owners and managers and agency problem.So,in order to solve that problem,it is necessary for enterprises to take effective incentive measures.It is proved that equity incentive according to unify the interests of owners and managers not only can reduce agency costs and attract and retain more talent people,but also can improve company performance by the research and practice,which promotes the development of enterprises.There are many kinds of equity incentive and the restricted stock incentive is one of them.The restricted stock incentive has two advantages.First,it can combine the interests of the company and employees according to grant those employee restricted stocks,which promotes them take actions from the view.As a result,it can reduce shortterm behavior and push mangers to choose the long-term plan,which has a good effect on long-term development of companies.Second,the restricted stock incentive is a long-term incentive system.This mechanism makes up for the poor motivation of the traditional salary structure and has a good effect stimulating the enthusiasm and creativity of employees and improve company performance.With the improvement of capital market and relevant policies,the restricted stock incentive plays an important role in corporate governance and more and more companies choose this mode.However,there are some obstacles in the process of implementing incentive plan in fact,including choosing incentive object irrelevantly,using inappropriate indicators,imperfect governance structure,no corresponding safeguards and so on,which results in failing to achieve incentive goals.So,in order to achieve the incentive plan,companies should pay more attention on choosing appropriate incentive objects,using proper indicators,setting up governance structure and establishing guarantee measures.This paper analyzes the motivation and effect of NavInfo's restricted stock incentive plan.NavInfo is one of the leading digital map providers and adopt the restricted stock incentive plan in 2015.It is a high-tech enterprise has a high demand for talent and technology.Combining with the background and its strategic development of the company,this paper makes a detailed analysis on the incentive motivation.The research shows that the reason for using equity incentive includes reducing agency costs,meeting the needs of human capital,promoting strategic transformation and technological innovation,and enhancing corporate performance.Then,this paper also focuses on the effect of incentive plan from the changes on ownership structure,agency cost,staff and company performance.After analyzing the restricted stock incentive plan of NavInfo,this paper argues that the restricted stock incentive can help to reduce agency costs,build a talent team,improve technological innovation and it is conducive to the promotion of the company.Combining case analysis,this paper summarizes some suggests for listed companies.The company should optimize its governance structure,establish a long-term incentive mechanism,select an appropriate incentive mode according to the enterprise situation and set a series of reasonable assessment indicators.This paper not only supplements the research on motivation and effect of restrictive stock incentive in high-tech enterprises,but also provides ideas for companies to make restrictive stock incentive schemes,which has some reference significance for the corporate governance and implement of the restricted stock incentive.