Research Of Public Company's Stock-right Incentive Plan

Equity incentive is a way to ease the agent conflict between shareholders and managers, its purpose is to suppress the short-term behavior of the operators, and the interests between shareholders and operators should be kept consistency. Equity incentive plan was applied in our country for a short time, its still a controversial topic about it's impact on company performance and value.In this paper we describe the way of incentive stock, an overview of the theoretical basis of equity incentive plans and related documents, elaborate the equity incentive plan system and its evolution in China. Then the theory with practice, using case study methods, analysis Wolong Electric's equity incentive plan. These include:the basic situation of the case company and it's equity incentive plan; from the equity amount of equity incentive plan, the exercise price and vesting conditions and other aspects of performance to analysis the f Wolong Electric's equity incentive plan; In the end, from profitability, operating efficiency, solvency and growth areas to measure the economic consequences of equity incentive plan.The results of this study will help regulators, investors and listed companies to understand the problems which they would meet in implementing the equity incentive plan, and to provide reference for improving the implementation of equity incentive plan.