Research On Equity Incentive Effect Of Fangda Special Steel

With the rapid development of modern enterprises,equity incentive has gradually become an incentive system for enterprises to maintain long-term development.China’s capital market has developed rapidly in recent years,and more and more enterprises implement equity incentives in China.The purpose of implementing equity incentive is to improve corporate operating mechanism,ensure the long-term and short-term interests of the enterprise,stabilize the outstanding talents of the management and increase the long-term returns of shareholders.Therefore,enterprises can formulate equity incentive plans according to their own operating conditions and industry development,so as to maximize the effect of equity incentive.The Fangda Special Steel enterprises selected in this paper have a long history of development in China’s steel industry and play an irreplaceable role in the steel manufacturing industry.The equity incentive plans implemented by the enterprises are representative.Taking the equity incentive of Fangda Special Steel as an example,the background significance of the study,the current status of the study,the research content,the methodology and the innovation points are presented,and combs the concept and theoretical basis of equity incentive,such as principal-agent theory,human capital theory and incentive theory.The company’s equity incentive event was introduced,including the characteristics of stock incentive,the scope of incentive objects,the number of shares and the list of incentive employees.This paper makes a case study of the equity incentive of the company,and studies the changes of the company before and after the implementation of the equity incentive from the perspective of market performance,financial performance and non-financial performance.The financial performance of the company is systematically analyzed from the profitability index,operating ability index and solvency index,and the implementation effect of the company is summarized.Through further analysis of the equity incentive of enterprises,there are mainly the following deficiencies: the assessment indicators are relatively single,the exercise conditions are relatively loose,the equity incentive period is relatively short,and no low-carbon development indicators are set.Finally,aiming at the existing problems,the paper puts forward the optimization suggestions of appropriately increasing the assessment indicators,reasonably improving the exercise conditions,increasing the effective incentive period and setting the low-carbon assessment objectives.Overall,the implementation of Fangda Special Steel’s equity incentive plan has been relatively smooth,with some improvement in operating capacity,debt paying ability,and non-financial performance,while the company’s profitability has declined.This paper hopes to provide reference and reference for more relevant enterprises through the case study and optimization suggestions of equity incentive implemented by Fangda Special Steel.