The Selection And Optimization Of Equity Incentive Scheme For LZ Company

The equity incentive mechanism first appeared in the United States in the 1950 s,and it has developed rapidly from the 1970 s to the 1990 s.It has been widely implemented in economically developed regions such as Europe and Asia.In 2005,China began to deal with the equity split reform program,which laid the foundation and conditions for the equity incentives of enterprises.After the 2006 “Listed Company Equity Incentives Management Measures” was published,more and more companies started the talent competition through equity incentive measures.From the perspective of the long-term development of the company,the short-sighted behavior of the management was eliminated and the equity incentive mechanism was used to fully stimulate the management awareness and enthusiasm of the management staff.In this paper,through the research model of combining theory with practice,this paper proposes optimization suggestions for the case company's equity incentive mechanism,provides theoretical guidance for the implementation of its equity incentive mechanism,and uses literature research methods and case study methods to study the company's equity incentive plan.Through analyzing the content and implementation details of the equity incentive plan implemented by LZ,the problems in the implementation process are determined,including the need to optimize the corporate governance structure,imperfect performance assessment indicators,unclear exit mechanisms,and unclear design elements of the equity incentive system.The lack of equity incentive program implementation effect evaluation indicators,etc.,laid the foundation for the following LZ company equity incentive plan design.From the actual situation of LZ Company,several optimization suggestions are proposed,including optimizing the corporate governance structure,improving the performance evaluation system,improving the employee exit mechanism for equity incentives,clarifying the design of the constituent elements of the equity incentive system,and establishing an evaluation system for the implementation effect of the equity incentive plan.It is helpful to improve LZ's equity incentive plan.Through theoretical and practical case studies,the risks involved in the implementation of the company's equity incentive plan were identified,including contract risks,handling relationships with investors,employee dismissal,tax risks,and corporate reputation risks;on this basis,risk aversion strategies were proposed,including signing Clearly related contracts,dealing with investors frankly,clearing the employee exit mechanism,clarifying individual income tax payment rules,and taking corporate reputation as the basis for consideration when formulating proposals;finally,in order to improve the implementation of the equity incentive plan,two protection strategies are proposed.This includes strengthening the implementation and management of equity incentive plans and improving the related supporting mechanisms for the implementation of equity incentives.It is hoped that this paper can provide some theoretical guidance for the implementation of equity incentive plans by Chinese enterprises.