Research On The Design And Implementation Effect Of Stock Incentive Plan

In the context of the separation of two powers in modern enterprises,in order to solve the principal-agent problem,equity incentives are considered as an effective long-term incentive mechanism,which can fully mobilize the enthusiasm and creativity of employees,and bring the interests of business operators and owners into convergence Effectively reduce agency costs.Since the promulgation of the Measures for the Administration of Equity Incentives for Listed Companies in China in 2016,the enthusiasm for implementing equity incentives has risen,but the specific results have yet to be discussed.Empirical and case studies at home and abroad also find that the implementation of equity incentives is not optimistic.Therefore,in order to better solve the management problems of modern enterprises,it is important to discuss the design and implementation effects of equity incentive plans.In this regard,based on the research results at home and abroad,this article takes individual cases as a starting point,and hopes to start with a single case company,from personality to commonality,to provide a reference for other companies to implement equity incentive plans in the future.This article selects IFLYTEK CO.,LTD.as a case company,and conducts an in-depth discussion on the design and implementation effects of the three equity incentive plans of IFLYTEK CO.,LTD.This paper analyzes the design of the three incentive plans from seven dimensions: incentive motivation,incentive object,incentive mode,grant scale,exercise price,exercise arrangement and exercise conditions.At the same time,it analyzes the impact of various scheme designs on the effect of equity incentives,and conducts a comprehensive analysis from short-term market responses,financial indicators,and non-financial indicators,and summarizes the successful and unreasonable equity incentive design and case of the company in the case.The company provides rational recommendations for the implementation of equity incentives.The study found that the IFLYTEK CO.,LTD.Incentive Program has significantly improved the profitability and growth ability of the company,and also has a positive effect on the stability of the company's employees,the optimization of its academic structure,the improvement of its innovative research and development capabilities,and the expansion of the market size.As for the impact of short-term stock price volatility,solvency and operating capacity,the effects are unstable.At the same time,it was found that the three incentive plans have the shortcomings of insufficient equity incentives and limited long-term incentive effects.In general,the company's third equity incentive plan was implemented successfully,followed by the first and the worst the second time.The main reasons are that the third incentive plan involves the largest number of people,the exercise conditions are relatively reasonable,and the option model Transform into a restricted stock model with greater incentives.At the same time,this article summarizes the advantages and disadvantages of the implementation of the equity incentive plan of IFLYTEK CO.,LTD.The advantage lies in the diversification of incentive models and the implementation of the "double assessment" system at the individual level and at the company level.The shortcomings are: excessive evaluation of the exercise of financial indicators,exercise conditions are not set reasonably,insufficient core staff incentives and long-term effects are unstable.Finally,this article puts forward reasonable suggestions for these deficiencies.The author believes that IFLYTEK CO.,LTD.should reasonably design the exercise conditions when it implements equity incentives in the future.