Research On The Effect Of Equity Incentive In Dr.Peng Co.,Ltd

With the continuous improvement of China's economic development level,the span between enterprise management and management mode is getting larger and larger,and a series of problems are gradually generated between enterprise owners and management.In order to effectively deal with this problem and ensure that the interests of the owners and managers of the enterprise tend to be consistent,the company's core management personnel should be retained,the company's management personnel should be encouraged,and measures such as equity incentive should be initiated.The equity incentive policy in western countries is relatively mature,while China's equity incentive policy started late.In recent years,many listed companies in China have adopted the equity incentive policy,and many have stopped the equity incentive policy.Many problems have emerged in the actual operation process,which need to be paid attention to.For domestic innovative companies provide some references for the implementation of equity incentive plan,based on the Dr Peng telecom media group co.,LTD as the research object,from Dr Peng,after the implementation of equity incentive measures,focusing on its current equity incentive situation in-depth analysis,and detailed combing equity incentive plan for the impact of enterprise development.Case study based on the literature,first of all,both at home and abroad about the equity incentive model,equity incentive effect of combing theory and related literature,on the basis of the selected as case study object,and Dr Peng briefly discusses the development process of Dr Peng,detailing the implementation of equity incentive measures of real drivers,assess the rationality of its implementation of composite equity incentive schemes,from shares,financial indicators and non-financial indicators(employee retention and r&d)analysis Dr Peng,the effect of the implementation of equity incentive schemes.Through the case analysis to get the following conclusions:(1)Dr Peng obvious effects of equity incentive plan implementation: on the one hand,this article from the financial indicators to analyze Dr Peng implement equity incentive plan to the enterprise business performance,the influence of the main financial indicators including debt paying ability,operation ability,profit ability and development ability,the ability improved,enterprise performance indicators have reached the preset value;On the other hand,this paper analyzes the staff retention and r&d investment before and after Dr.Peng implemented the equity incentive plan from non-financial indicators,and finds that Dr.Peng's equity incentive plan can stabilize the core backbone of the enterprise,attract excellent talents from outside at the same time,enhance the r&d ability of the enterprise,and ensure the sustainable development of the enterprise.In general,the equity incentive plan implemented by Dr.Peng is effective.(2)the evaluation of Dr.Peng's equity incentive plan.Dr.Peng's equity incentive plan was designed in a reasonable and rigorous manner.First,Dr.Peng implemented a compound equity incentive plan,combining the stock option model with the restricted stock model to give full play to the advantages of both.Second,Dr.Peng implemented the compound equity incentive plan for a wide range of incentive objects,covering the middle and senior managers and core technical(business)personnel of the enterprise,which can fully mobilize the enthusiasm of the enterprise employees and maintain the overall development balance of the enterprise.Thirdly,in terms of the arrangement of right of access(unlocking),the exercise ratio of Dr.Peng's equity incentive plan is set according to the mode of increasing year by year,which is in line with the requirements of the sustainable development of the enterprise,takes into account the long-term and short-term interests,avoids the short-sighted behavior of the management,and is more conducive to the steady development of the company.Fourth,in terms of the design of line right(unlocking)conditions,Dr.Peng's equity incentive plan USES multiple indicators to effectively avoid the financial fraud of some employees in order to obtain benefits and harm the interests of the enterprise.Fifth,in terms of the time point and price of exercise right grant,the stock price of the enterprise was at the bottom when Dr.Peng selected the time point of exercise right(grant),and the implementation of the equity incentive plan could enable the incentive object to obtain substantial profits in the future.However,Dr.Peng's equity incentive plan also has shortcomings: first,the incentive effect time of Dr.Peng's equity incentive plan is not long,and after the exercise period of the equity incentive plan,all financial indicators have declined.Second,the incentive time limit of Dr.Peng's equity incentive plan is too short.Thirdly,the equity incentive plan of Dr.Peng is not restrictive.In the later stage of the equity incentive plan,the number of employees leaving will increase and the r&d investment will decrease.Based on the above conclusions,this paper proposes the following Suggestions :(1)rational use of the composite equity incentive model,so that the incentive object can enjoy the high return brought by the equity incentive scheme as soon as possible,and effectively prevent the incentive object from financial fraud in order to obtain short-term benefits;(2)extend the time limit of equity incentive;(3)set up a diversified exercise right assessment system considering the characteristics of the enterprise;(4)pay attention to the long-term nature of the exercise arrangement,so that the incentive object will pay attention to the long-term interests of the enterprise;(5)select the appropriate exercise(grant)opportunity and design the equity incentive plan according to the enterprise's own operation and industry development.