Evaluation Study On The Implementation Effect Of Equity Incentive Plan Of D Company

As a long-term incentive mechanism,equity incentive is an effective way to retain and attract core talents and alleviate the principal-agent problem.In recent years,more and more enterprises begin to implement equity incentive,grant more targets,incentive groups wider.The research on equity incentive of listed companies is conducive to giving full play to the enthusiasm and creativity of senior executives,core technology and business backbone,and organically unifying the interests of shareholders,the company and the core team,which plays a very positive role in the long-term development of the company,business performance and the improvement of the overall competitiveness of the market.This paper takes D Company in waterproof industry as the research object,and analyzes and evaluates the effect of the company’s equity incentive.Firstly,the plan and implementation process of the company’s three equity incentive schemes are sorted out,the motivation of the company’s implementation of equity incentive is analyzed,and the effect of D Company’s implementation of equity incentive is evaluated from three aspects: financial performance,non-financial performance and market response.Secondly,the vertical analysis of the company’s three equity incentives is carried out,and Colson Shares and Beixin Building Materials are selected as the comparison companies for horizontal analysis,to find out the reference points and existing defects in the design of equity incentives.Finally,the improvement suggestions are put forward for these problems,in order to provide reference for other companies’ equity incentives.It is found that D company has problems such as imperfect incentive object withdrawal mechanism,unitary equity incentive mode and loose assessment conditions at the company level.At the same time,in the process of equity incentive,reasonable selection of incentive objects,determination of incentive implementation time,formulation of appropriate incentive validity period and assessment objectives have a positive effect on the implementation of equity incentive,which is conducive to retaining and attracting talents,stimulating the R&D and innovation ability of employees,increasing corporate performance,and promoting the sustainable development of the company.Therefore,when D company designs and implements equity incentives in the future,it can further improve the withdrawal restrictions of incentive objects,adopt various incentive modes according to different incentive purposes,reasonably formulate assessment conditions,and improve the corporate governance mechanism,so as to promote the rapid and sustainable development of the company.