Research On The Implementing Effect Of Fosun Pharmaceutical (Group) Co. Ltd. Equity Incentive Plan

The practice of equity incentive at home and abroad proves that equity incentive can effectively prevent short-term behavior problems in company operation and operation.In order to remain invincible in the fierce market competition,maintain the sustainability of the company's development and even maintain a certain growth rate of performance,the most important thing for modern enterprises is to solve the principal-agent problem of the company.To a certain extent,equity incentive can help enterprises solve these problems efficiently and effectively.Equity incentive,which belongs to a form of long-term incentive,can play a successful incentive effect for the company's employees,so that the owners,managers and even ordinary employees of the company have the same interests and goals to achieve,equity incentive to maximize the value of enterprises.China's market system has been constantly established and improved,and the legal system of equity incentive has been constantly improved.More companies have begun to try and gradually adapt to the practice of equity incentive theory,and started the implementation of their own company's equity incentive plan.While the theoretical research of equity incentive has gradually matured,the practice of equity incentive has also become increasingly mature.This paper takes Fosun Pharmaceutical(Group)Co.Ltd.as the research object and uses case study method.First,it briefly introduces the basic situation of Fosun Pharmaceutical(Group)Co.Ltd.and the industry situation of this kind company.Secondly,it mainly analyses the implementation effect of the incentive plan,that is,the short-term incentive effect and the long-term incentive effect.Through the analysis,it finds out what deficiencies need to be improved in the implementation of the equity incentive plan.Based on the study of the implementation effect of the Fosun Pharmaceutical(Group)Co.Ltd.equity incentive plan,it gets inspiration and provides corresponding suggestions for the implementation of the equity incentive plan in the future pharmaceutical listed companies.Taking Fosun Pharmaceutical(Group)Co.Ltd.as an example,this paper studies the incentive effect of Fosun Pharmaceutical(Group)Co.Ltd.equity incentive plan by case study.It is found that the two equity incentive plans of Fosun Pharmaceutical(Group)Co.Ltd.have been successfully unlocked.From the short-term effect,the stock price of Fosun Pharmaceutical(Group)Co.Ltd.fluctuates abnormally and sharply during the publication of the draft equity incentive scheme,and is positive and upward.From the long-term effect,equity incentive has played a certain role in improving profitability index and operating ability index,in addition,it has also played an optimization role in the overall structure of employees,and has a certain improvement in R&D innovation ability,but it has limited incentive effect in retaining talents and attracting talents.