Research On The Implementation Effect Of Dje Equity Incentive Plan

In the modern enterprise system,the separation of ownership and management rights leads to serious agency problems.Equity incentives are the main means to realize reduction of agency costs and the accordance between the interests of the executives and employees and the interests of company.Large-scale empirical researches have verified that equity incentives have the effect of improving company performance and reducing agency costs.Aiming at enriching the research results of equity incentives and providing reference for enterprises to implement equity incentives,this paper uses case study method,chooses Dongjiang Environmental Co.Ltd as research object,analyzes the rationality of its equity incentive plan,and explores the implementation of equity incentives.Based on the two equity incentive plans issued by Dongjiang Environmental Co.Ltd in 2013 and 2016 and combined with the change in the nature of property rights,this paper analyzes the characteristics of the two equity incentive plans and the changes in short-term market response.On this basis,since Dongjiang Environmental Co.Ltd 's 2013 equity incentive was completed,combined with the formulation and implementation of corporate strategy,this paper analyzes the long-term implementation effect from the role of incentive targets and researches how the implementation of equity incentives promotes to serve the company's strategy,and finally analyzes whether and how the implementation of equity incentives achieves the purpose of incentives from the perspective of financial performance.The study found that the continuous optimization of Dongjiang Environmental Co.Ltd equity incentive program promoted the improvement of market response.The implementation of equity incentives also achieved the convergence of corporate interests and benefits of senior managements and employees,which was conducive to the company's long-term strategy implementation and competitiveness.Finally,this paper proposes feasible improvement suggestions from the perspectives of the improvement and supervision of the incentive system,the optimization of corporate governance and the rationality of the design of equity incentive elements at the government and enterprise levels.