Analysis The Implementation Status About Equity Incentive Of Listed Companies On GEM In China

Core target of the listed company equity incentive is to solve the problem that employees can not match the target executives setting, prompting executives to form a community of interests between employees and shareholders, incentive executives and employees to create more value for shareholders and society. Equity incentive system emerged in the1950s, and got a rapid development from the1980s. Early in the21st century, however, because of the abuse of equity incentive system has caused many well-known accounting fraud scandal in European and American countries, equity incentive system has been widely questioned. From then on,its development dumped into the trough, thus the improvement of equity incentive system is imperative. It has been a while of equity incentive system in China.During this period, capital market of our country continue to grow bigger, the legal system gradually stronger and the corporate governance structure is becoming more and more perfect. On January1,2006, the China securities regulatory commission promulgated the measures for the administration of the listed company equity incentive, the equity incentive of listed companies in China ushered in the development of good times.The gem market in China established on October23,2009.Since the first28companies listed on gem market on October30,there are more and more listed companies of the gem market to realize the importance of enterprise human capital, and gradually began implementing equity incentive system. But recently, as the stock market downturn, many companies have finished their equity incentive plans. I select Shenzhen gem market listed companies that carried out equity incentive system as the research object.Based on the current situation of the implementation of the gem market listed company equity incentive is analyzed, combining with the implementation of SMW power,I hope to provide some suggestions to our country on the implementation of equity incentive system, the promotion in the future and further experiences and lessons。 The aims of the research:This paper aimed at not only analyzing the reasons for equity incentive schemes that are terminated, but also comparing the second phase of the equity incentive plan with the first phase, to conclude whether the second plan suit the company’s actual situation.Main contents:This article introduces the overall situation of the company’s equity incentive schemes listed on the gem market at first, and divided these schemes into terminated on the implementation of equity incentive schemes and the implementation of equity incentive plans on operation. Then I analyses the reasons why to not terminate the implementation of equity incentive plans,analyses the design elements of equity incentive schemes on operation. Furthermore I select Zhejiang SMW power supply power Co. LTD.(hereinafter referred to as:SMW power supply, stock code:300068) that the first phase plan was terminated because of macroeconomic factors, and then launch the second phase of the incentive plan for case analysis. Finally I proposed the present condition of the implementation of the gem market listed company in our country. The article is divided into six parts:The first chapter, introduction. Briefly explain in this paper, the background, significance and the purpose of the study, as well as research ideas,methods,literature review and the expected contribution.The second chapter, equity incentive theory basis and types. Principal-agent theory, human capital theory, incentive theory and enterprise growth theory laid the foundation for the generation and development of equity incentive, and they are the theory basis of equity incentive system. Through these theories and the relationship between the equity incentive can reveal the core concept of equity incentive system. Equity incentive types are divided into shares, options shares and options now, and every kinds of motivation types have their advantages and disadvantages, so enterprises should choose which kind of incentive type according to their own actual situation and decide.The third chapter, the gem listed company equity incentive in our country implementing overall situation. I mainly describe them from three aspects:the characteristics of the gem markte listed companies, the implementation of the overall situation and the analysis of the causes of termination of the plan.The fourth chapter, analysis of each factor of the gem listed company equity incentive plan in our country. I plan six aspects for the implementing equity incentive schemes of the gem listed companies in our country to analyze,they are the incentive mode, the underlying equity proportion, incentive object, motivation, incentives and incentive price.The fifth chapter, SMW power equity incentive case analysis. Analysis the elements and implementation effect of the SMW power terminated stock option incentive plan.Then I compare the restricted stock and stock option incentive plan to the stock option incentive plan.Chapter vi, proposal of the gem listed companies in China implement equity incentive. From the view of enterprise, it is necessary to grasp the launch timing of equity incentive plan at first, then to perfect the equity incentive conditions set.In addition, from the view of the regulator’s point, they need to sound legal system, improve the external environment constraints mechanism, and perfect information disclosure mechanism, to ensure the effectiveness of the capital market.Main Contributions:Through the analysis of the implementation of equity incentive status quo on the gem market in three years, I mainly has the following contributions:First, the analysis of the causes of termination of the plan provide experiences and lessons for other listed companies upcoming equity incentive plans, and remind the timing to launch equity incentive plans of the other listed companies.Second, the analysis of each factor of the implementing equity incentive plans provide the reference for other listed companies which design to lauch equity incentive plan.Third, the case analysis of the SMW equity incentive power reflects the CSRC comments on the equity incentive plan meaningless,and thus provide the basis for the improvement of the equity incentive supervision system.In addition, because the gem fixed number and the year of the implementation of equity incentive that gem market listed conpanies carry out is shorter, I unable to analysis its equity incentive plan after implementation of the long-term effects in detail, and the author’s limited knowledge and ability, there may be some questions such as uncomprehensive and unclear description.I hope teacheres can provide guidance and criticism!...