The Design Of The Wanhua Chemical Equity Incentive Scheme

With the development of the modern enterprise system,the separation of ownership and management rights may lead to the damage of the interests of the business operators for their own interests.In this case,some foreign scholars in 1920 s started the study of equity incentive.In 1990 s,China began to introduce equity incentive,although China started late,but the development of equity incentive in China is very rapid,until July 10,2017,there are 1024 listed companies announced the equity incentive,accounting for 29% of the total listed companies 3531.In the process of practice,the experience both at home and abroad has proved that equity incentive plays a very positive role in preventing "moral hazard" and promoting the management enthusiasm of the operators.Under this background,this paper takes equity incentive plan design as a breakthrough point to study equity incentive.This article takes Wanhua chemical as a list of enterprises,according to its actual situation,through the use of literature,qualitative analysis,quantitative analysis method,and other eight major plates to its equity incentive scheme design.The eight plates are the choice of incentive mode,the choice of the incentive object,the determination of the incentive quota,the determination of the price of the incentive mark,the determination of the source of incentive,the choice of incentive time limit,the setting of incentive conditions,and the setting of incentive adjustment mechanism.Each sector will explain the strategies and reasons why Wanhua chemical equity incentive will be adopted.