Equity Incentive Case Study Of Y Company

With the rapid growth of the global economy,the number of enterprises in the domestic market economy is gradually increasing.In order to further optimize the internal affairs of the enterprise and achieve the purpose of expanding the scale of operation,the professional manager system has gradually been concerned by enterprises.For the enterprise,the emergence of the manager system has improved the professional level of the enterprise management work to a certain extent.Of course,the problems that the professional personnel's business objectives deviate from the business owner's business objectives arise.Based on this background,in order to achieve effective and intense managers and reduce the agency costs between them and the business owners,the equity incentive system is further derived.Since 1990,with the introduction of the equity incentive system,it has gradually improved the external environment required for equity incentives,and thus contributed to the launch of the equity incentive case.Then,in the process of implementing the equity incentive plan,the problems of corporate finance and incentive effects have gradually become an important topic in academic research.Equity incentives,as an incentive,play a very important role in managing companies by mitigating conflicts between company owners and management and reducing costs.On the other hand,they can also By motivating employees to achieve performance improvement in daily affairs.However,since the domestic market is not particularly mature,the way of equity incentives starts relatively late,so there are still many problems in the way of equity incentives at this stage.Therefore,in view of the special situation in China,according to the different business conditions of each company,the equity incentive plan suitable for its own development is made,which achieves the effect of benefiting and avoiding harm,and at the same time enables the enterprise to achieve the goal of benign development.Therefore,China needs to conduct in-depth research and analysis in the current plan for equity incentives.For this paper,Y company is mainly selected as the main research object,and the case analysis method is adopted to conduct further research and analysis on its equity incentive case.The above related issues are studied in depth and can be listed to other industries in a certain degree.The implementation of the company's equity incentives has played a higher reference value.The research method of this paper is to analyze the motivation of Y company's equity incentives in combination with SWOT analysis method,and then analyze the exercise conditions,exercise price,exercise standard and incentive object in the equity incentive plan in detail,and select the same industry.The X company with similar operating conditions was used as a comparison object,and DuPont analysis method was used to analyze the financial effects of the equity incentives in detail.After that,the company will carry out a detailed analysis of the benefits of the incentive program effect of Y company and the effect after the implementation plan.Finally draw conclusions and recommendations.