Research On The Implementation Effect Of Equity Incentive Plan Of ESTUN AUTOMATION

Equity incentive is an important method in modern enterprise management,which is used to solve the principal-agent contradiction caused by the separation of the two powers.Equity incentives mean that by granting a certain number of stocks to senior management and core personnel,they receive fixed income and enjoy the additional benefits of stock appreciation,stimulating their work enthusiasm and enhancing corporate value.This paper analyzes the implementation effect of equity incentives of Nanjing ESTUN AUTOMATION Co.,LTD.(hereinafter referred to as Estun)by case analysis method,and puts forward suggestions and conclusions for the problems found.In the implementation effect analysis,the stock price is analyzed by the excess return rate and the cumulative excess return rate to evaluate the market reaction after the implementation of the equity incentive;the financial analysis method is used to analyze the financial indicators of the four aspects of the Estun company to evaluate the implementation of the equity The financial performance after the incentive;the R&D innovation after the implementation of the equity incentive is evaluated by the R&D investment,the number of R&D personnel and the patent situation.Through the research on the effect of Estun's equity incentives,it is found that equity incentives have a positive effect on the corporate value of Estun,but there are also some problems.The equity incentive plan has problems such as single evaluation index,short incentive period,low exercise conditions,small number of grants and low grant price.Suggestions for these problems are made: improving the assessment mechanism,extending the incentive period,raising the assessment criteria,increasing the number of grants,and increasing the grant price.At the same time,in terms of internal governance,strengthen the role of the board of supervisors and improve the independent director system;in the external market environment,strengthen the construction of the capital market,improve the professional manager market,and improve relevant laws and regulations.I hope that the implementation of the above three aspects can improve the implementation effect of equity incentives.Finally,the following conclusions are drawn:(1)Equity incentives have a positive effect on enhancing corporate value.(2)At present,the domestic equity incentive plan is biased towards “welfare”.(3)A reasonable equity incentive plan is the core condition for equity incentives to play a role.(4)A sound internal governance mechanism is the guarantee for the successful implementation of equity incentives.(5)A healthy external market environment is a prerequisite for equity incentives to function.With the development of China's capital market,there will be more listed companies implementing equity incentive plans in the future.It is hoped that through the research on Estun's equity incentive case,it can provide some reference for enterprises that will implement equity incentives in China,in order to promote China's equity.The contribution of the healthy development of the incentive system can help the listed companies in China to implement the equity incentive system and enhance the value of the company through equity incentives.