Research On Stock Option Incentive Of Wiscom System Co.,Ltd.

In order to alleviate the principal-agent contradiction caused by the separation of the two rights,the equity incentive mechanism emerges as the times require.Since the introduction of equity incentive into China in the 1990s,China has issued a number of legal documents one after another,which has promoted the development of stock option incentive system in China and gradually matured it.After the split share structure reform in 2006,More and more enterprises begin to try the stock option incentive model,which has both success and failure,which shows that the research of stock option incentive in China still needs to be improved,and enterprises still need to pay attention to when implementing stock option incentive.In this paper,Wiscom,a high-tech private enterprise,is selected as a case company,and the principal-agent theory,incentive theory and human capital theory are expounded,and the first stock option incentive plan implemented by Wiscom is studied.This paper analyzes on the shortcomings and merits of the stock option incentive,and gives some suggestions for perfecting and summing up the desirable experience.This paper is mainly divided into case description,case evaluation,improvement suggestions and experience enlightenment.In the part of case description,this paper briefly combs the background of case industry and company,then analyzes the motivation of implementing stock option incentive,and then summarizes the content and implementation process of stock option incentive scheme.In the part of case evaluation,first of all,it analyzes whether the incentive effect of stock option achieves the expected goal from two aspects of financial effect and non-financial effect and evaluates the incentive plan.Secondly,considering that the incentive scheme is the general program document of the company to implement the stock option incentive,and it is also a major influencing factor of the incentive effect,this paper looks at the essence through the phenomenon of the poor points found in the evaluation of the stock option incentive.Looking for its root causes focuses on the analysis of the shortcomings in the design of the incentive scheme.In the part of improvement suggestion and experience enlightenment,according to the design defects of the scheme,this paper puts forward some suggestions for perfecting the incentive scheme,and sums up the experience enlightenment obtained after the case study.There are still some imperfections in the stock option incentive of Wiscom,and there are still some deficiencies in the design of the elements of the incentive scheme.This paper has targeted price and conditions for the exercise of the right to exercise,from the point of view of incentive duration and constraint compensation mechanism,this paper puts forward some suggestions for perfecting the incentive scheme,and tries to make the stock option incentive plan play a greater incentive effect from the angle of incentive scheme design.On the other hand,this paper also summarizes the merits of Wiscom stock option incentive plan.It is hoped that the improvement suggestions and experience enlightenment of this paper can provide some reference for Wiscom and other enterprises of the same type in our country to carry out stock option incentive plan in the future.