Study On The Implementation Effect Of Equity Incentive In A Group

With the gradual maturity and perfection of modern enterprise system,the separation of management right and ownership has become an inevitable result of economic development,and thus the principal-agent has become a choice that modern enterprises must face.However,there are many problems in principal-agent in reality.In order to effectively solve these problems,equity incentive arises spontaneously.As a long-term incentive mechanism to solve the principal-agent problem,equity incentive has been widely used in the mature market economy.The equity incentive for Chinese enterprises started in the late 1990 s.Although it has drawn on the experience of overseas mature markets,due to the particularity of the transition economy and the immaturity of the capital market,the theory and practice of equity incentive have encountered many problems unique to China in the implementation process.This article USES the case analysis method and standard method,to A group has been established for implementation of equity incentive system are summarized,summarizes A group of equity incentive has experienced six stages: A group company in the early stage,A group of network virtual shares under the bubble phase,A group of equity incentive system optimization phase,A rights group under the financial crisis of saturation stage,A group of overseas expansion period incentive plans and TUP plans.Found A group of equity incentive problems in the formulation and implementation,including: the stock dividend yield showed A trend of decline,the company's internal management and human resource management risk,stock funds unresolved could lead to A lack of cash flow of the company,in the case of A company's cash flow nervous,easy to cause A run on the crisis,the company exists in the new research and development personnel reserve.Combination theory with practice to analyze the causes of the problem,find A group of equity incentive set without do risk identification and evaluation,failed to fully protect the rights of employees and A rights issue mechanism is unreasonable,employee stock funds problems unsolved,the insufficiency of virtual equity incentive,equity incentive for r&d staff was not being made.At the same time,the index analysis method and the economic value added method are used to evaluate the effect of the equity incentive of A group on it,and the results and deficiencies of the equity incentive of A group are summarized from the aspects of the incentive object,the incentive amount and the period of validity.Then,relevant Suggestions are put forward according to the existing problems: risk factors should be considered when formulating the equity incentive plan,the communication and decision mechanism of equity incentive should be improved,the standardization and transparency of the incentive system should be ensured,the incentive mode of stock option should be adjusted,the virtual equity incentive plan should be improved,and specific equity incentive plan should be formulated for the r&d team.Through the study of this paper,readers can have A clearer understanding of the implementation effects and shortcomings of equity incentive of A group,and put forward the corresponding optimization countermeasures,which is of great reference value to the development of equity incentive schemes of Chinese companies.Although equity incentive system has been so widely used outside China,it is still in the exploratory stage in China.Through the analysis of thispaper,I hope to further enrich the relevant theories of equity incentive,and at the same time to provide reference and reference for the implementation of equity incentive in Chinese companies.