Research On Equity Incentive Effect And Problems Of LM Company Based On Balanced Score Card

With the aggravation of market competition,talent competition is becoming more and more intense,the importance of human capital in enterprises is prominent,and the principal-agent relationship exists widely,which urges enterprises to pay attention to this and take certain measures in the process of management.Equity incentives appear as a result.Equity incentive originated in the United States in the middle of the 20th century and was applied late in our country.Until the Securities Regulatory Commission issued the "measures on Stock incentive Management of listed companies(trial)" in 2006,Chinese enterprises began to implement the equity incentive plan gradually.Since the Securities Regulatory Commission issued the "measures for Stock incentive Management of listed companies" in 2016,China's listed companies have started to use the system on a large scale.Model for corporate governance.Because the gem companies are high growth entrepreneurial,high-tech SMEs,the demand for talent is more intense,so the number of equity incentive companies is also more.This paper establishes the balanced Scorecard through the analysis of the current situation and strategic goal of the equity incentive of LM Corporation,and through the balanced Scorecard,it comprehensively scores the indexes of each level of the LM Company from 2013 before the equity incentive to the post-equity incentive to 2017,and the balance scorecard is the basis of the balanced scorecard.This paper analyzes the influence of LM company's equity incentive on the whole company through its scoring results,and finds out the part of the LM company's stock ownership incentive process which is worth drawing lessons from and the possible problems in the process of the company's equity incentive.The analysis shows that through the implementation of equity incentive,LM Company has achieved preliminary results in the aspects of retention of core talents,product development and so on.Some problems still exist,including:first,The company level performance appraisal index is single,the index is to the enterprise earnings ability appraisal;second,the incentive total ratio may not be able to make its equity incentive plan to play its incentive role effectively;Third,the shareholder structure of the company is unreasonable,the company has no actual controller,three of the top four shareholders are PE companies,mainly to obtain investment returns,the current reduction of holding sets has a great impact on corporate governance and equity incentive effect.In view of the above problems,some suggestions are put forward,and some enlightenments and prospects are given to the equity incentive of Chinese companies.