Research On The Equity Incentive Mechanism Of Small And Medium -sized Private Non-listed Enterprises

As the continuous development of China economy, enterprises are facing various opportunities and challenges. How to ensure that the enterprise core staff work together to seize the opportunities and meet the challenges in the competitive environment, has become the core problem of many enterprises. The traditional salary bonus is generally determined by the short-term performance of the managers, so it is related to the company’s short-term performance. But the relationship to the company’s long-term value is not obvious, managers may persue short-term performance indicators at the expense of the company’s long-term interests. But the corporate shareholders concern more about the growth of the company long-term value, rather than the realization of short-term financial indicators. In order to make managers care about the long-term interests of shareholders, the interests of managers and shareholders need to be pursued in the same way. The implementation of equity incentive enables managers to have enterprise shares and become the shareholders of the enterprise.This can be an effective way.As a long-term mechanism, equity incentive unifies the interests of enterprise managers and owners. Management, core technology and the backbone of the business gain direct profit through long term growth of enterprise value, and bear the corresponding risk to a certain extent. So managers concern more about the long-term value of enterprises in the business process. However, not only large listed companies have this problem, many non listed enterprises especially small and medium-sized private enterprises also need Condensing core talents with enterprises development. But now for non listed small and medium-sized private enterprises, because of the implementation environment and relevant legal system of equity incentive exists problems, Stock pricing and converted into cash exists difficulty, the implementation is difficult. In this paper, in order to solve incentive problems faced by many small and medium-sized private enterprises as a starting point, analysis and explore from the perspective of unlisted small and medium-sized private enterprises equity incentive mechanism, and preliminary design equity incentive plan for FT company as an example, for our country numerous unlisted small and medium-sized private enterprises in the implementation of equity incentive to provide reference.