Research On The Implementation Effect Of Equity Incentive In UFIDA Network Company

With the rapid development of economic globalization,equity incentive has developed rapidly in China.In January 2006,the CSRC issued the measures for the administration of equity incentive of listed companies(for Trial Implementation).In December 2006,the SASAC issued the measures for the administration of equity incentive of state-owned holding listed companies(for Trial Implementation).In January 2007,the Ministry of Finance issued "Enterprise Accounting Standards No.11-Share Payment".The issuance of these three documents marks the formal equity incentive mechanism in China Set up.A large number of listed companies have established equity incentive system based on these documents to promote the development of the company,and non listed companies have begun to use this way to attract and retain talents.As a result,equity incentive began to flourish in China.The 21st century is a knowledge economy era,the core competitiveness of enterprises is more and more reflected in the management of human resources.Due to the characteristics of human resources,such as freedom,mobility and self-control,a single incentive system has been unable to stimulate the enthusiasm of employees,and enterprise managers urgently need an effective management tool.Equity incentive can effectively make up for the shortcomings of the traditional incentive mechanism.By closely binding the interests of employees and the interests of the enterprise,a community of common destiny is formed to help the majority of enterprise managers easily manage employees,let employees work spontaneously like the boss,and promote long-term development of the company.In addition,the equity incentive scheme is also developing and innovating in the specific application of enterprises,providing diversified incentive tools for enterprise managers.This paper selects the three equity incentive schemes of UFIDA network company as the research sample.The implementation of these three equity incentive schemes basically covers the whole stage of practice since the issuance of the administrative measures for equity incentive of listed companies(Trial),which can be said to be a miniature of the practice cases of equity incentive in China,and has certain representativeness.This paper first describes the concept of equity incentive and related theories,combined with the development process and organizational structure of UFIDA network company,discusses the basic content of the three equity incentive program.Then from the two dimensions of financial indicators and non-financial indicators,the paper demonstrates and analyzes the implementation effect of UFIDA network company's equity incentive,reveals the shortcomings of the equity incentive program,and puts forward suggestions for improvement.I hope that through the case study of equity incentive of UFIDA network company,it can bring some inspiration and thinking to other enterprises,aiming to solve the problem of insufficient incentive in the development process of enterprises,so as to activate the whole talent team,improve corporate governance,and achieve the purpose of efficient management.