On The Present Situation And Countermeasure Analysis Of Equity Incentive System Of Private Companies

With the deepening of economic globalization,the smaller private companies are at a disadvantage in attracting top talents,so how to enhance the ability of private companies to attract more talents in order to ensure the development of private companies becomes an urgent problem.With the intense competition,the joint-stock company has become the main form of companies in China.In order to effectively encourage the talents in management and technical field,many joint-stock companies have adopted the equity incentive system,connecting the company's development and individual's interests together to ensure the consistence of the employees' working target and the company's development goal.In the practice,the equity incentive methods have achieved good results.Some private companies in China begin to follow the practice taken by joint-stock companies to retain talents,but in actual operation,many private enterprises find that equity incentive system is a double-edged sword,there are significant risks behind the effectiveness of the incentive method,it is probably because the spread of equity leads to problems in corporate control.Therefore,in the use of equity incentive system,the private enterprises need to develop a reasonable incentive plan to meet the intense demand,at the same time,reduce the risk of equity division as far as possible.Under the influence of the relevant policies,domestic private enterprises explore a variety of equity incentive models,which are suitable for different enterprises of different types,different sizes and at different stages of development.The paper analyzes all kinds of equity incentive models according to the characteristics,based on which,by uniting the features of private enterprises and life cycle of the enterprises,using the SWOT analysis method,summarizes the purpose and significance of equity incentive system of private enterprises;at the same time,it takes A Company as an example,summarizes the elements that lead to the success and also existing problems of A Company's equity incentive system,and finally puts forward countermeasures and suggestions to solve the problems which mainly include:establish a standardized capital market,improve relevant laws and regulations,perfect enterprise management system and governance structure,optimize the enterprise equity incentive system and establish a scientific financial management system and performance evaluation system.Only by doing so,can the equity incentive system of private enterprises be effective,can human capital owners get effective motivation and restraint,will the target of the development strategy of private enterprises be realized as soon as possible.