Analysis On The Motivation And Implementation Effect Of JinJing Technology’s Equity Incentive

As a medium and long term incentive system,equity incentive is to treat equity as a kind of salary to be paid to the motivated personnel,so as to mobilize their work enthusiasm and subjective creativity,and achieve a lasting win-win situation between the incentive object and the enterprise on the basis of improving the long-term business performance of the company.In 1952,Pfizer implemented the world’s first stock option incentive plan in order to reasonably avoid the high tax of the country and achieved the expected effect.After the 1980s,equity incentive system began to be popularized and applied in American listed companies.In 2005,China’s share system reform began,and gradually strengthened the legal norms of the stock market,at the same time,accelerated the pace of equity incentive in enterprises.According to statistics from wind database,by the end of August 2018,1,326 listed companies in China had proposed equity incentive plans,accounting for 37.4% of the total number of listed companies.However,from the practical results of enterprises,not all the implementation of equity incentive plans are effective.In view of this problem,this paper takes Jin Jing Technology as the research object to analyze the implementation effect of equity incentive plans.This paper takes the manufacturing industry vigorously supported by the state as the research object.The manufacturing industry is the mainstay of the industrial structure.Due to the problem of overcapacity,the development of enterprises is restricted and the product structure is facing pains in the transformation.This paper analyzes the effect of Jin Jing’s equity incentive plan and puts forward some Suggestions to improve the equity incentive plan.To be specific,firstly,from the research background and significance,I studied the relevant research literature on equity incentive at home and abroad.Secondly,it briefly describes the relevant concepts and basic theories of equity incentive,sorts out the main contents of the equity incentive plan of the case enterprise,and briefly describes the industry background and current situation of the enterprise.At last,the paper analyzes the effect of equity incentive from the aspects of financial index and non-financial index.The research results confirm that equity incentive has a positive promoting effect on the improvement of enterprise operating performance,and can improve the profitability and operation ability of enterprises.However,the equity incentive plan also has shortcomings,such as the equity incentive exercise index is set too low,may cause the equity incentive effect is not sufficient;The assessment indexes of equity incentive are not selected comprehensively,and only the profitability of the company is considered,while the solvency of the company is quite different from that of the industry.In view of these deficiencies,this paper puts forward three Suggestions,that is,to improve the effective professional manager market,and to establish an independent regulatory body for the implementation of equity incentive plan;To improve and enrich the relevant contents of the conditions for the lifting of equity incentive;Timely adjust the design elements of the equity incentive plan according to the actual operating conditions of the company,so as to make Jin Jing think about and improve the deficiencies of the equity incentive plan in practice.At the same time,it also provides some references for the implementation of equity incentive for manufacturing enterprises that are also in product transformation and upgrading.