Research On Equity Incentive Of ZK

The rapid progress of society has stimulated the rapid development of enterprises,domestic and foreign enterprises have become more and more keen on equity incentives.Especially,listed companies and large enterprises prefer to use equity incentive mechanism.Equity incentive can reduce the sense of distance between employees.Successful equity incentive plans can quickly reduce the company's management costs and also play a positive role in enhancing the company's competitiveness.The form of equity incentive includes: share potion,restrictive stock,virtual stock and employee stock ownership plan,and other systems.Equity incentive mechanism first popular in Europe and United States and other developed countries.It was gradually introduced into China in the early 1990 s and is favored by many large enterprises.This move makes numerous enterprises flock to.Although many companies have the ambition to implement equity incentives,they lack the ability to develop workable plans and ended up failing.This paper starts with the case of ZK company with two equity incentive plans.Mainly through the analysis of its equity incentive plan first proposed in 2013 to the termination of the plan one year later in 2014 as a clue,it analyzes the main financial indicators in the financial statement of ZK company in the past eight years and makes a comparative analysis on the indicators of ZK company solvency?earning power?operating efficiency?development capacity and EVA before and after the equity incentive plan was implemented in 2013 and 2017.Three other enterprises in the same industry were analyzed by comprehensive scoring method.In this form,the operating results of the four enterprise were scored,and the development of the companies in the past seven years was compared and analyzed.Through the analysis of ZK company's staff education distribution and job distribution to study the company's non-financial indicators.Besides,the paper also makes a brief comparative analysis of ZK's equity incentive plan in 2013 and 2017.The situation of ZK's equity incentive plan is evaluated from multiple perspectives.Based on the conclusion of this case study,and sums up the experience and lessons,then according to the analysis results,enlightenment is obtained and the results of the study will help companies implement equity incentive plans.