Research On The Influence Of The Nature Of Corporate Property Rights On The Design Of Equity Incentive Plan

With the development of the economy and the improvement of the system,more and more listed companies begin to use equity incentive plan in order to reduce the agency cost,improve the compensation mechanism and attract excellent talents.However,due to the unreasonable design of equity incentive schemes and many other factors,the incentive effect of equity incentive plan is not ideal or even negative.This paper takes the three equity incentive plans announced before and after the reform of Centralcon Holdings as a case study.Firstly,this paper analyzes the characteristics and motivations of each equity incentive plan by comparing the specific design and implementation of the three equity incentive plans.Secondly,this paper explores the influence path of property right nature on equity incentive.Finally,to verify the foregoing analysis,this paper compares the implementation effect of three equity incentive plans from three dimensions.It is found that,in terms of plan design,restrained by relevant policies and strict supervision,the incentive under the background of state-owned holding is weak and welfare is strong.However,due to less constraints,the equity incentive under the private background is more powerful and stimulating.The effect of equity incentive plan is influenced by the rationality of plan design.Based on the study of this case,this paper summarizes the advantages and disadvantages of the three equity incentive plans of Centralcon Holdings,and puts forward some suggestions from three aspects: policy supervision,corporate governance and equity incentive plan design,so as to provide reference for listed companies to adopt equity incentive plans.