Research On Redesign And Implementation Of Equity Incentive Plan In Company A

The practice of equity incentive,as a form of incentive,began with the reform of state-owned enterprises in the 1990s,when it was just a period of exploration and practice.The equity incentive gradually began to develop in our country after 2005,of which the notable symbol was the measures for the administration of equity incentive of listed companies issued by the state in 2006.Since the equity incentive is an exotic product,some listed companies directly use the equity incentive,which leads to similar equity incentive plans that are not in line with actual situations of China and lack of Chinese characteristics.Company A was established in April 2000 and was identified as a high-tech enterprise by Liaoning Provincial Department of Science and Technology in 2007.In October 2009,it was listed on the GEM board of Shenzhen Stock Exchange.Company A has carried out two equity incentives successively in order to retain talents and maintain the team of employees stable.Although it played a role in retaining talent,but did not achieved the desired results.Based on related theories of equity incentive,this paper studies redesign and implementation of equity incentives of company A from the aspect of human resource management in order to promote the practice of human resource management of company A.In addition,it can also provide reference for human resource management of other companies similar to company A.The thesis is divided to seven chapters.The first chapter illustrates the background and significance of the research,main ideas and contents,and the method of the research.The related theories of equity incentive is the basic theory of researching plans of equity incentive,so the second chapter summarizes the connotation,mode and function of equity incentive and principal-agent theory,human capital theory,incentive theory and other related theories.In order to deepen the readers' understanding of the research object,the third chapter introduces the development,organization structure,basic business,human resource condition,and operation condition of company A comprehensively.Based on the conditions of equity incentive of company A,Chapter 4 analyzes the existing problems of equity incentive process of company A,such as failing to achieve the target of retaining core talents,unsuitable for development of the company,low satisfied level for equity incentives of employees and so on.Moreover,this chapter analyzes the reasons of the problems laying a solid foundation for the design of subsequent plan.Chapter 5 redesigns the equity incentive plan of company A.The content of the design includes objectives and principles,incentive objects and numbers,incentive mode,incentive cycle and unlocked conditions,and stock sources and grant price.Finally in Chapter 6,the paper studies and discusses the implementation of the redesign plan for equity incentive in company A.Chapter 7 is the conclusions and prospects of the paper.