A Case Study On Equity Incentive In Dongbao Pharmaceutical

With the development of the economy,human capital plays an increasingly important role in the enterprise.The increasing importance of human capital has led more and more companies to think about how to avoid brain drain and stimulate the creativity of employees.At present,equity incentive is an effective way widely used by enterprises to alleviate brain drain,resolve principal-agent conflicts,and attract external talents.In 2005,along with the implementation of the share-trading reform and the revision of the company law,equity incentive is widely used in listed companies in China.At the same time,the in-depth study of equity incentive has become a special field for Chinese scholars.How to develop a scientific and reasonable equity incentive plan and how it will affect the company has become a concern for us.Dongbao Pharmaceutical is one of the earliest listed companies in China and plays a pivotal role in the pharmaceutical industry known for its high technology.In the face of the increasingly sound equity incentive system,the major changes in the national medical system and the strong demand for talent,Dongbao Pharmaceutical has proposed an equity incentive plan in a timely manner.The reason for choosing Dongbao Pharmaceutical as the research object is that the pharmaceutical industry as a high-tech industry has an urgent need for retaining core talents and solving the contradiction of principal-agent;at the same time,there is less experience in using case methods to explore equity incentives in pharmaceutical companies.Through the exploration of the equity incentives of Dongbao Pharmaceutical,it is hoped to provide reference for the implementation of equity incentives for other pharmaceutical companies.Based on the above background,this paper explores the equity incentive plan implemented by Dongbao Pharmaceutical through case study.In the structure of the article,first of all,introduce the research background and significance of this article,the research methods and innovations,as well as relevant research results at home and abroad.At the same time,the concept and models of equity incentive and their theoretical basis are elaborated,which lays a solid theoretical foundation for follow-up research.Secondly,it introduces the development of Dongbao Pharmaceutical and the background conditions for implementing the equity incentive plan,and analyzes the incentive plan and specific implementation.Then,it explores the impact of the implementation of equity incentive for Dongbao Pharmaceutical.The impact is mainly divided into the impact of financial indicators and the impact of non-financial indicators.Impact on financial indicators use specific financial data to explore changes in the company's solvency,development capabilities,operational capabilities,and profitability.The impact on non-financial indicators mainly explores the impact of the implementation of equity incentives on stock prices,the impact on employees' education level and the impact on corporate innovation capabilities.Through a series of investigations,we learned the advantages and disadvantages of Dongbao Pharmaceutical's equity incentive plan.Finally,the inspiration for improving the equity incentive plan of Dongbao Pharmaceutical for its shortcomings,and then we obtained industy inspiration that improving the external environment for equity incentive implementation,improving the internal governance structure and establishing a reasonable equity incentive plan.