Research On The Design And Effect Of Equity Incentive Scheme Of Listed Companies

Equity incentive means that the company grants a certain number of company shares or options to the management or core employees with additional exercise conditions,making them become shareholders of the company and bound with the company’s long-term interests,so as to reduce the company’s principal-agent costs,and attract and retain core talents.Since the introduction of Pfizer,a well-known American pharmaceutical company,in the 1950 s,it has been highly regarded by companies around the world as a long-term incentive for enterprises to motivate and retain talents.With the deepening of China’s reform and opening up and the modernization of corporate governance,some domestic enterprises are eager to implement equity incentives.China’s stock incentive plan originated in the 1990 s,but due to the restrictions of the laws and regulations at that time,it failed to form a more largescale application.In 2005,the CSRC issued the Administrative Measures for Equity Incentive of Listed Companies(for Trial Implementation),which affirmed the application of equity incentive at the level of laws and regulations.Since then,China’s equity incentive plans have sprung up like bamboo shoots,but the following problems are the implementation effect and scheme design of equity incentive plans.Hyaluronic acid,also known as hyaluronic acid,is ubiquitous in humans and animals.Because of its good water retention,lubricity and viscoelasticity,it can achieve biodegradation and biocompatibility in the human body,and can maintain good biological activity.In recent years,hyaluronic acid has been used more and more in the fields of medicine,aesthetics and food,and the development of hyaluronic acid industry is also growing rapidly.Therefore,how to attract and retain core talents in the industry has also become one of the issues that companies in the industry pay more and more attention to.This paper takes the equity incentive plan of Bloomage Biotech,the leading enterprise in the hyaluronic acid industry,as a research case,and adopts normative research and case analysis as the main research methods.On the basis of relevant theories of equity incentive at home and abroad,through horizontal comparison with companies in the same industry that have implemented equity incentive plans,compared with the equity incentive plan implemented by Bloomage Biotech in the longitudinal direction,the birth background,scheme design and implementation effect of the equity incentive plan of Bloomage Biotech were discussed and analyzed.It was found that although the equity incentive plan of Bloomage Biotech was not perfect,there were still many areas to be improved,it still brought improvements to all aspects of the company,such as improved business performance and enterprise value The company’s R&D input and output have been improved.This paper consists of five parts.The first part is the introduction,the second part is the theoretical basis and literature review related to equity incentive,and briefly introduces the different views of the academic community on the effect and scheme design of equity incentive.The third part is about the current situation of stock incentive of listed companies in China,and studies the specific conditions of stock incentive of listed companies in China.The fourth part is case analysis.It analyzes the relevant background of Bloomage Biotech,the necessity of implementing equity incentive,the specific elements of the equity incentive plan of Bloomage Biotech and the impact of equity incentive on the four dimensions of the company.The fifth part is the conclusion and suggestions,summarizing the impact of equity incentive on Bloomage Biotech,and providing reasonable suggestions for the design of equity incentive scheme of Bloomage Biotech in combination with relevant provisions and actual effects.