Research On Perfect World Equity Incentive

In corporate governance,equity incentive system is a relatively important strategic decision.Equity incentive is a kind of corporate governance method that gives a certain amount of stock to the company’s managers to achieve the convergence of the interests of the management and the owner,so as to ease the conflict of interest between the principal and the agent.Reform and opening up have provided a foundation for the rapid development of China’s capital market.Meanwhile,listed companies have been constantly improving their internal governance while growing stronger.Equity incentive system has gradually attracted more and more attention.The formal issuance of the policy "Trial Implementation of Equity Incentive Management Measures for Listed Companies" marks the formalization of equity incentive system in China,and equity incentive system has been adopted by more and more enterprises with sound legal protection.This paper adopts the method of comparative analysis and financial analysis to discuss the influence of equity incentive on the operation and development of perfect world.First,the equity incentive plan is described,and the motivation,incentive plan and implementation of perfect World equity incentive plan are briefly analyzed.Followed by the analysis of perfect world effect,combined with the data in the same industry company and the entire incentive plan design elements from the market share price volatility,financial performance indicators,human resources,the implementation of the three main aspects focus on incentive effect on the overall analysis,find out the initial defects in the process of the lack of incentive plan and implementation.Through analysis,concluded that there are defects in the design of exercise index of perfect world equity incentive plan,with too single index and low exercise price.An the selection and quantity arrangement of incentive objects are not comprehensive and lack of systematic analysis.According to the principles of theoretical guidance and practice as well as the research conclusions of this paper,reasonable improvement Suggestions are proposed for the whole design and implementation of incentive schemes.Perfect World can optimize the incentive object and exercise price internally,choose diversified incentive schemes and strengthen the external governance environment at the same time.This paper summarizes the combination mode of exercise factors to maximize the incentive effect and provides reference for the design and implementation of the next equity incentive plan and even the improvement of China’s equity incentive system.