Equity Incentive Plan And Effect Evaluation Of Fiberhome

Equity incentive system is used to solve company commission agent problem as a method.China's listed companies use this method introduced by foreign countries.Because the companies themselves are different and their industries are different,their effects are different The implementation of equity incentive plan can be used as a means to retain talent and improve corporate performance for these companies with fierce competition in the industry,need a lot of talent.If this approach is used properly,these companies will bring huge benefits.In terms of the policy content,China's legal system has put forward more and more strict requirements on regulating listed companies to standardize the implementation of equity incentives.After the issuance of "state-owned listed companies to regulate the implementation of equity incentives system,the issue of notice" which was published in October 2008.Fiberhome Communication Technology Co.,Ltd.'s first equity incentive plan of the company was reviewed and approved by the general meeting of shareholders in 2009 and the second equity incentive plan was passed in 2014.In addition,Fiberhome is currently the only scientific research and industrial entity that integrates the three strategic technologies in the field of optical communication in China and is a leader in the industry.Because of its representativeness,it was chosen as a case study.This article firstly describes the current situation of equity incentive in China's listed companies,analyzes the relevant laws and regulations background.Then analyze s the two share incentive programs of Fiberhome.The effect of implementing equity incentive is affected by the six dimensions of incentive model,source of shares,conditions of grant,proportion of grant,incentive object and incentive validity in equity incentive plan.Therefore,this article analyzes the two equity incentive programs of Fiberhome mainly from these six perspectives,and compares the two solutions,Summarizes the differences between the two programs and the reasons for the differences.Next,this article analyzes the effect of implementing equity incentive,and mainly evaluates the effect from two aspects:financial index and market reaction.From the financial point of view,the operational capability,profitability,solvency and growth ability of Fiberhome are evaluated,and the balance sheet,income statement and cash flow statement of Fiberhome are analyzed.The market reaction reflects the most direct response of investors to the implementation of equity incentives in Fiberhome.So it is necessary to analyze it.Combine the two to make an overall assessment.Combined with the previous program analysis,the overall evaluation of the implementation of equity incentive plan for Fiberhome was conducted,and accordingly,some suggestions for improvement of Fiberhome were put forward for reference.Finally,after analyzing the status quo of the industry in which Fiberhome applies,this paper puts forward some suggestions on how to implement the equity incentive scheme in this industry.Based on the background of current laws and regulations,this paper puts forward some suggestions for further optimizing the development environment of enterprises.Based on the equity incentive scheme and effects of fiberhome communications,the following conclusions are drawn,Fiberhome has the problem of single selection of scheme exercise right index,lack of horizontal comparison of exercise right requirement and low number of stock grant.As for the listed companies of the same industry,the following Suggestions are put forward:reasonable incentive mode should be chosen in the course of equity incentive scheme design,and internal supervision mechanism should be improved to promote the rationality of scheme design.For the relevant departments,the corresponding policies of the equity incentive can be further subdivided into the industry,following the characteristics and patterns of the industry,creating a more dynamic external environment.