Design And Financial Performance Of Equity Incentive For The TY Company

As a significant incentive pay system for the modern firm, equity incentive has been widely applied in western countries. Over the past few years, equity incentives have been widely replicated and expanded in China. Following "The Company Law" "The securities act" "Equity incentive measure for the listed companies" and other relevant rules and regulations of the equity incentive began to be normalized. The equity incentive plan will be in focus of China.With the constant development of the economy of our country. Private economy has become an important factor and a sustaining power of the national economy for the company, how to attract the right talent was more importantly, retain the right talent. The private company was also still had a hard time to retain talent. There was not enough talent for the company. Equity incentive as a combination of incentives and constraints is known as "golden handcuffs" in the West. How to keep the talent at the private company is the major question. The capital market is required to enhance oversight and regulations. The relevant legal framework is imperfection.As a long-term incentive, equity incentives make the interests of the core technical professionals and the managers are bound up with the interests of the corporate’ value and the shareholder’interests. And the equity incentive is beneficial to decrease the company principle agent costs, strengthen incentive constraints and criterion corporate management. It is a necessity and feasibility for the equity incentive of private enterprise’s future development in our country.Nowadays there are many equity incentive modes. In the paper, we will try to research an equity incentive problem through a pre-ipo company. We want to pursuit a developing road for the private company.