The Case Study On Termination Of Equity Incentive By Noposion

With the widespread application of equity incentives in corporate governance,it is not uncommon to announce the termination of the implementation of equity incentives.In foreign countries,when the implementation conditions change and the equity incentive plan is difficult to continue,the enterprise may choose to reset(modify)the original equity incentive plan to continue execution.In China,under the same circumstances,due to the provisions of Memorandum No.3 on Equity Incentives,China's listed companies can only choose to terminate the original equity incentive plan.In China's listed companies,between 2007 and 2018,the number of termination of equity incentive programs accounted for about one-fifth of the total number of incentive programs,accounting for a large proportion.Therefore,research on termination of equity incentives should be taken seriously.The research on the motivation and influence of the listed company's termination of equity incentives has certain theoretical significance for the research on supplementing corporate governance and equity incentives,and the impact of the company's implementation of equity incentives and the impact of termination of equity incentives on enterprises.Has a certain practical significance.Noposion implemented its first and third equity incentive plans in 2009 and 2015,but the two equity incentive plans ended in a natural termination and active termination,with certain representation.Based on the relevant theory of terminating equity incentives,this paper firstly expounds the actual situation of Noposion's termination of equity incentives,and then analyzes the motivations of its termination of equity incentives,and then cuts into three aspects: short-term market response,long-term financial performance and non-financial performance.Through comparative research,it analyzes the impact of Noposion's termination of equity incentive plan by different termination methods,and finds out the problems and references in terminating equity incentives,and finally proposes from the enterprise level and policy level.Related recommendations.Through the case analysis of Noposion's termination of equity incentives,it can be found that,first of all,Noppin has some problems in the design of the exercise conditions of the two equity incentives: if the industry level and strategic objectives are not fully considered,and the design of the exercise conditions is inelastic.Secondly,from the impact of two different termination methods of Noposion,the termination of equityincentives will bring a certain degree of negative impact on the short-term market reaction,long-term financial performance and non-financial performance,but the natural termination of equity incentives will be more It is conducive to the purpose of reducing negative impacts,and the active termination is more conducive to the company's own pace of control to reduce the cost of time.Although Noposion has problems in the design of equity incentive contracts,which led to the termination of the first and third equity incentive plans,its combination of the advantages and disadvantages of natural termination and active termination in the choice of termination methods has provided certain The meaning of reference.Finally,based on its existing problems and references,this paper proposes at the enterprise level that the design of corporate equity incentive exercise conditions should comprehensively consider the industry level and strategic objectives,while paying attention to the flexibility of exercise conditions,and comprehensive natural termination and initiative.The advantages and disadvantages of termination are reasonably selected for termination;at the policy level,it is recommended to introduce a reset mechanism to allow the adjustment of the established equity incentive clauses as appropriate,and to strengthen the information disclosure and market supervision of the termination of equity incentives.