Research On The Design Of Stock-based Compensation Of JT Extinguishing And Protection Company

Personnel transfer is very easy in modern enterprise,how to attract and retain key staff is becoming one of the main problems of each enterprise.Stock-based compensation is such a kind of long-term incentive way.By setting certain conditions,the enterprise can share the shareholders' rights and interests with their staff,so they can connect the staff's interest with the long term goal of company.Equity incentive originated in the United States,it has become a common incentive mechanism in modern enterprises.Since it was introduced into China,it attracted more and more attention,not only for a more in-depth study in theory,at the same time,many enterprises have implemented their own design of the equity incentive plan,hoping to solve the problem in enterprise management by equity incentive.But a reasonable and scientific design of equity incentive will have big influence on the final effect,how to use this management tool is becoming an important issue for company.Though this paper,the author hopes to find out the main problems and solutions in the process of the implementation of the equity incentive of the private company.through the case study of Stock-based compensation of JT company.This paper briefly introduces the basic fact of JT company and it's present situation of employee motivation,then describes the necessity of implementing the equity incentive of JT company.Through the summary of JT company in the choice of incentive target,incentive target performance appraisal,selection of equity incentives,incentive to determine the quantity and price,to determine the source of the equity incentive,equity incentive incentive target exit mechanism,rights and obligations and liability for breach of contract and other aspects of the problem,discusses the feasibility of the Stock-based compensation of private company.