Research On The Design And Implementation Of HT Group Equity Incentive Program

Equity incentive is a very important way to encourage directors,senior management and core technical staff.Equity incentive was introduced into China in 1990 s,and it has been developing rapidly since 2006.At present,it has become a trend that the listed companies adopt the equity incentive,and in many companies,equity incentive has played a positive role to improve the performance and to enhance value.HT group,as China's leading enterprises,has experienced more than 40 years of development.At present,the enterprise has entered into a critical stage of development,and the inter-generational transition of leadership group,to improve work motivation of the senior management staff,to retain key personnel and to improve management benefits are buzzing around the group.A reform and innovation to incentive mechanism must be faced so as to realize a long-term sustainable development of the group.Equity incentive for the HT group is undoubtedly a good choice.Firstly,this paper systematically reviews the relevant theories of equity incentive,including the concept of equity and equity incentive,contracts and agent theory,human capital theory and incentive theory.This paper analyses and compares the differences between the virtual equity,stock options and restricted stock.The experiences of equity incentive are summarized through some cases of the listed companies which provides references for HT group.Secondly,the 432 equity incentive model of HT group is constructed.This paper expounds the present situation of HT group,and the difficulties and problems,including how to smooth the business succession to the second generation,how to solve the first batch no longer intervene in the normal work in retirement,how to retain the key staffs,how to motivate subsidiaries and how to further improve the welfare of senior executives and so on.On these basis,this paper constructs 432 equity incentive model.Finally,this paper puts forward a scheme of equity incentive which expounds in detail the basic content of 432 equity incentive model,namely 4 is purposes,mode,people and quantify;3 is the mechanisms about entering,operating and withdraw,and 2 is the sources about funds and stock.And then the performance of equity incentive is evaluated.Through studying the theories and methods of equity incentives,this paper further enriches the theoretical system of equity incentive,and provides theoretical reference for the enterprises to carry out equity incentive in a certain extent.Meantime,this paper will be helpful to improve the performance of HT group,and it will also helpful to achieve a long-term sustainable development of HT group.