A Case Study Of Hunan Valin Steel Co.,Ltd.'s Restricted Stock Incentive Plan

Restricted stock refers to a certain amount of shares of the company which the listed company grants to the incentive objects according to predetermined conditions.The incentive object can sell and benefit from the restricted stock only if the working years or performance targets meet the conditions stipulated in the equity incentive plan.Under the guarantee of the “Management Measures for Equity Incentives of Listed Companies(Trial)” implemented on January 1,2006,more and more listed companies adopt restricted stock incentive plans.However,most of the scholars mainly study on the effectness of implementation,measurement,accounting treatment and legal issues etc,there are few studies on the provisions of the incentive plan.Therefore,this paper selects Hunan Valin Steel Co.,Ltd as a case to explore the terms of the restricted stock incentive plan and provide ideas for other listed companies to implement the incentive plan.In this paper,theory and case are combined to analyze the restricted stock incentive plan.First of all,the theoretical part of the paper introduces the background,purpose,significance and ideas of the research.The research of scholars at home and abroad is reviewed and summarized.Next,the concept,characteristics,comparison with other equity incentives and the principles and points of the clause design are explained in detail.And then in the part of case study,this paper evaluates the profitability,operational capacity and solvency of Hunan Valin Steel Co.,Ltd's Restricted Stock Incentive Plan.Finally,this paper concludes the implementation of the restricted stock incentive plan by analyzing the incentive objects,grant price,subscription price,source of shares,timing,performance conditions and suspension plan determined in the terms of Hunan Valin Steel Co.,Ltd's Restricted Stock Incentive Plan.As a proposal,the formulation of the equity incentive plan should be combined with the economic background,the incentive objects should be reasonable,the price and the source of the share should be in line with the current situation of the enterprise,the lock-up period and the unlock period should be conducive to the realization of the incentive plan.