Research On The Equity Incentive Effects Of D Company

In knowledge economical time,human capital plays an increasingly important role in promoting the rapid development of enterprises.Effective equity incentive can enhance the cohesion of enterprises,achieve the convergence of interests between enterprises and individuals,alleviate the contradiction between the objectives of owners and managers,and effectively mobilize the initiative and enthusiasm of managers.However,due to the lagging development of China's capital market and equity incentive,the construction of equity incentive system and the implementation of equity incentive are still in the exploratory stage.In the process of implementing equity incentive,many enterprises encounter various problems.Therefore,in order to effectively play the role of human capital in the long-term development of enterprises,based on the problems in the practice of equity incentive in typical companies,combined with the current relevant institutional environment,it is particularly urgent to explore the implementation effect of equity incentive and to optimize the equity incentive scheme and related policies.On the basis of reviewing and combing the relevant researches on the effect of equity incentive in and abroad,this paper makes a theoretical analysis on the effect of implementing equity incentive in enterprises.Based on the relevant basic theories of equity incentive,it systematically analyses the scheme,implementation process,implementation effect and influencing factors of implementing equity incentive in D company as a typical case and put forward some relevant suggestions.The specific conclusions are as follows:(1)As an incentive means,equity incentive should pay attention not only to the indicators related to company performance,but also to the realization of the interests of the target.If the interests of the motivated object fail to meet expectations,it will be difficult to achieve the initial goal of equity incentive,that is,to motivate and stabilize the talent team.Therefore,even if the company has achieved its current performance goals,the instability of the talent team is not conducive to the long-term sustainable development of the company.In this case,D company's equity incentive performance goals were all achieved,but the equity incentive plan has been forced to stop.It is precisely because the interests of the incentive target in the process of equity incentive have not been guaranteed,some executives' after-tax income is even negative,the turnover rate of the incentive target remains high,and the goal of stabilizing the talent team is difficult to achieve.(2)The implementation effect of equity incentive is influenced by both internal and external factors of the company.When setting up the equity incentive plan,both internal and external factors should be taken into account.The unexpected implementation effect of equity incentive in D Company is caused by the combination of internal and external factors: on the one hand,the unreasonable establishment of equity incentive plan itself,on the other hand,it is influenced by the external factors such as the excessive supervision and restriction of the equity incentive system,the high cost of equity incentive tax,the unreasonable tax obligation date and the lack of a strong and effective capital market.To sum up,through the study of the implementation effect of equity incentive in case company,this paper improves the relevant theory of equity incentive research to a certain extent,and provides theoretical basis and practical guidance for the implementation of equity incentive to listed companies.