The Research Of Long Term Incentive Plan In ABC Company

Long term incentive is the core of Human Resource Management, only when stimulating the employee's working motive effectively, developing and managing human resource rationally and scientifically, fully arousing the enthusiasm and creativity of enterprise's employees, making the best possible use of the talents we can attract and obtain more talented employees to realize the strategic objective of the enterprise better. So the foundation of effective long term incentive mechanism becomes the key of SUCCESS of one enterprise.Long term incentive plan has been developed along with the creation of Equity-based Incentive Plan, which was taken as one effective methodology of reducing agency cost, embedded the features of material incentive and spiritual incentive, is praised highly and popular among many high tech enterprises. However rarely in-depth studies unveil its actual motivation result.This research is to fill the gaps to investigate the motivation result of this long term incentive plan, equity-based incentive program in ABC Company. The article firstly introduces the reasons why ABC Company managed to change previous long term incentive plan, the whole restructure process and features of current plan. Through the questionnaire designed based on compressed theory of incentive, it collected the feedbacks from employees about the program itself, their loyalty attitude to company, and inputs to performance management, objective management and career development perspectives. Based on employee feedbacks and basic motivation theories, it recommend establishing Long Term Incentive System for ABC company and provide redesign solutions at long term incentive plan design perspective and its execution perspective as well, including adding more long term incentive methods to supplement current equity-based incentive plan. It proposes adding variable compensation, training program and career development plan according to employee's substantial and immaterial demands. Besides, it recommend enhance communication, objective management and performance appraisal management to secure smooth execution of long term incentive plan. The research does hope to clearly explain why long term incentive mechanism can't work by only one or two programs; instead it requires every critical part in whole long term incentive system effectively collaborating.