Research On The Design And Effect Of Equity Incentive Plan In Pharmaceutical Enterprises

Equity incentives were born in the 1950 s.They refer to certain goals set by the company.When the management achieves these goals,the company gives a part of its shares or options as a reward,and connects the interests of the company owner and the operator through shares or options.Enjoy the benefits of the company's development,share the risk of the company's frustration,and it solves the principalagent problem arising from the separation of ownership and management rights to a certain extent.As an important means of corporate governance,its utility has been proven in the practical application of many Western companies.However,in China,due to the late start of China,various laws and regulations are still not perfect,especially the capital market related to equity incentives still has many problems,its effectiveness is not strong,affecting the utility of equity incentives;Chinese enterprises lack relevant experience in implementing equity incentives.The successful experience of Western countries is not consistent with China's national conditions.Therefore,China's equity incentives are still in the stage of crossing the river by feeling the stones,and we need constant research and exploration.Based on this background,this paper analyzes the two-stage restricted stock incentive plan implemented by Fosun Pharma by case analysis.This paper starts with the current situation of the equity incentive background of listed companies in China's pharmaceutical industry,sorts out its current situation,and lays the external environmental foundation for the analysis of the following.In the analysis of Fosun Pharma's two-phase equity incentive plan,the research started from three aspects: motivation,plan design and implementation effect.In the analysis of the motivation,the two equity incentives were discussed separately,and the motivations of equity incentives were interpreted from the industry level and the company level.The basic elements of the equity incentive scheme were used as the entry point to analyze and analyze the equity incentives of Fosun Pharma.Considering the planning considerations and the characteristics of the two incentive plans,summarizing the advantages and disadvantages of the equity incentive plan design;when analyzing the implementation effect,introducing the industry leader Hengrui Medicine and Yunnan Baiyao and the industry average as the references,and Comparing the changes before and after equity incentives,explore the impact of Fosun Pharma's two-term restricted stock incentive plan on business performance,R&D investment and some non-financial indicators such as employee structure and stock price,and finally conclude that Fosun Pharma's two-stage restricted equity incentives has a very significant effect on the company's healthy development and achieving strategic goals.Finally,it summarizes and analyzes the advantages and disadvantages of Fosun Pharma's equity incentive plan,and then puts forward corresponding suggestions based on the current status of equity incentives of listed companies in the pharmaceutical industry,hoping to provide some reference for the design of equity incentive plan for China's pharmaceutical industry.