Research On The Optimization Of Equity Incentive Scheme Of Letv In China

The theory of equity incentive in the 1950 s was born and developed in the United States.The development of this theory has greatly solved the problem of the principal-agent problem generated by the owner and the operator,reduce the cost of agency business,So that the objectives of the shareholders and managers consistent.Equity incentive as a long-term incentive model,In the rise of our country in 1990 s.Many domestic listed companies began to try to implement equity incentive program,However,due to the domestic equity incentive laws and regulations are not perfect,equity incentive related elements of the provisions are not clear,many companies that implement equity incentives ended in failure.Due to the implementation of the equity incentive program similarity is higher,enterprises do not combine their own actual situation,so not all companies have achieved the desired results.In the country issued a "listed company equity incentive management approach ","equity incentive related memorandum" 1,2,3 documents and other relevant laws and regulations,the number of companies that implemented equity incentives increased rapidly.2011 release of the "GEM Information Disclosure Memorandum" is for the GEM listed companies to implement equity incentive program provides a basis for implementation.Based on the development of music Letv itself,this paper analyzes the scientific rationality of equity incentive scheme in 2011,2013 and 2015,and is used by other enterprises in the same industry.In this paper,the Letv listed on the GEM as the object of study,through the domestic and foreign literature reading and understanding to the agency,Based on the theory of principal-agent and human capital,the third-stage equity incentive scheme for Letv has been implemented.Combined with the company's life cycle and SWOT analysis,From the external environment and the internal environment of the two aspects of Letv to implement the implementation of equity incentive feasibility analysis.Based on the 2010-2016 annual report data,analyze the change of company performance before and after the implementation of equity incentive.Based on operating income,net profit,weighted return on net assets and other financial indicators,combined with the turnover rate and other non-financial indicators to analyze the effect of the implementation of equity incentives.Combined with the implementation of the previous three equity incentive program,This paper makes a comparative analysis of the incentive object and theincentive quota,the exercise condition and the exercise arrangement and the evaluation index in the equity incentive scheme of Letv.Found that Letv equity incentive program is worth learning and the place need to improve.Establish a more consistent equity incentive program for Letv,for the GEM listed companies to implement equity incentive program to provide more basis for the similar industry.