The Equity Incentive Scheme Design Of LH

Recently,with the continuous improvement of the modern enterprise system and the increasingly fierce competition for talents,retaining the elite backbone,attracting more outstanding talents,and inspiring their subjective initiative have become the most urgent needs of most enterprises.Equity incentive is an effective incentive method widely used by domestic and foreign listed companies and non-listed companies.A large number of cases have proved that this type of incentive allows companies to combine short-term and long-term benefits,which also allows shareholders and employees to reach a greater degree of agreement on their interests,especially in terms of incentive measures for core executives,technical elites and business backbones.As a private enterprise participating in the military-civilian integration market competition,LH Company has to face the strong competitors of traditional state-owned military industrial enterprises,and can stand out in fierce competition only by fully utilizing the flexibility of the private enterprise system and maximizing the subjective enthusiasm of employees,especially the core executives.The equity incentive method is the best way to solve the problem of uniting core executives and attracting external talents in the early stage of small and medium enterprises.By reviewing and collecting past research materials,it is found that both domestic and foreign countries have decades of research history on equity incentives.However,the practice of scientific and systematic equity incentives in China is not sufficient.Theorists have different opinions on the effects of equity incentives.In particular,the laws and regulations that non-listed companies can refer to for equity incentives are still blank in China.The common practice in the industry is to refer to the management regulations of listed companies and design the equity incentive plan for unlisted companies based on their actual situation.There is even less research on equity incentives for military-civilian integration companies.The talent structure,industry characteristics,and business models of military-civilian integration enterprises have their own particularities,so more specific and in-depth equity incentive research is needed to support the development of such enterprises.This paper takes LH Company as an example to conduct an in-depth investigation and analysis of the company's industry status,strategic planning,business objectives,and existing incentive system,combines the actual situation of the enterprise's operation and development with the difficulties and pain points in human resource management and designs an equity incentive plan which is highly operable,convenient,and conducive to introduction,so as to help LH company unite and attract the talents needed and to achieve the company's long-term development goals.At the same time,based on the business characteristics of the “civilian army” enterprises and the pain points of human resources of small and medium-sized private enterprises,the paper takes non-listed companies as target to study the equity incentives of the typical “civilian army” non-listed companies,and presents induction of their characteristics,so as to demonstrate the method of equity incentives for the feasibility of attracting and incentivising talents in the general “civilian army” enterprises,and find a general method for designing the “civilian army” enterprise's equity incentive plan.