Research On The Problems And Improvement Of TOREAD's Equity Incentive Scheme

With the maturity of domestic market,system and other environments,enterprises are becoming bigger and stronger.Separation of ownership and management rights is the only way for enterprises to base themselves on long-term development.Accordingly,the "principal-agent problem" arises.The best way to solve this problem is to implement "equity incentive".At the same time,at the present stage,the increasingly fierce market competition makes "talents"become the necessary resources for enterprise development.Therefore,equity incentive mechanism is favored by scholars and entrepreneurs at home and abroad.However,most of the research is focused on the main board market.Although the research on GEM companies has increased in recent years,it is still not rich enough.This paper mainly uses three methods of literature research,case analysis and comparative analysis to study the case of road explorer.Firstly,by reviewing the research background and reviewing the literature at home and abroad,this paper determines the necessity of this study.Secondly,it introduces the related concepts and theoretical basis of equity incentive,which will supplement and pave the way for the following,and make the improvement suggestions more convincing.Then,this paper introduces the motivation of the explorer to implement equity incentive,and the content of the fourth stage equity incentive plan,and briefly describes the implementation,incentive effect and the characteristics of the various stages of the plan.The analysis shows that the overall equity incentive effect of the Explorer is unsatisfactory.Subsequently,in order to verify this rough conclusion,this paper analyses the effect of equity incentive implementation from the perspective of financial and non-financial performance,and finds that,whether from the company's financial indicators or non-financial performance,since the implementation of equity incentive,there has been a "downward" trend as a whole,which proves that,as mentioned above,the effect of equity incentive implementation of Pathfinder is not obvious.Subsequently,this paper mainly looks for the reasons for the problems existing in the design of equity incentive scheme,and puts forward some suggestions for improvement based on the relevant theory,and gives some enlightening suggestions in the synthesis of the full text,hoping to give some inspiration and constructive reference to other enterprises.In this paper,one of the first listed companies in the GEM "Pathfinder" as the research object,the implementation of the four-phase equity incentive plan is not good,but has the representative of the study.Therefore,this paper chooses the Pathfinder as a case,makes a full analysis,puts forward the shortcomings of this case and suggestions for improvement,and based on this case gives some enlightenment,hoping to be able to other GEM.The company provides reference.At the same time,scholars at home and abroad have little research on the garment industry,and the Pathfinder belongs to the garment industry.Therefore,choosing the Pathfinder as the research object enriches the theoretical research on equity incentives of GEM listed companies.