Research On Equity Incentive Improvement Of PD Group

With the continuous improvement of China's capital market,enterprises have begun to accelerate their expansion,and all walks of life are in urgent need of talents.Therefore,absorbing and retaining talents have become the basic motive force for enterprise development.In recent years,enterprises have increasingly focused on employee's motivation as a means of stabilizing outstanding employees.Equity incentives are long-term incentives in employee incentives.They can closely link equity incentive targets to enterprises and enable them to participate in corporate decision-making,sharing profits and sharing risks.On the one hand,appropriate equity incentives can encourage employees to perform their duties for the company in order to achieve long-term development and the realization of their own interests.On the other hand,when faced with the separation of two powers emerging in corporate management,equity incentives can also effectively restrain the operator from deliberately making decisions that are detrimental to the owner's rights for his own benefit,which not only solves the conflict of interest between managers and shareholders,but also saves agency costs.However,insufficient or excessive incentives can make the results counterproductive.Therefore,each company should adapt to its actual situation and make a reasonable plan when implementing the equity incentive.Based on Principal-agent Theory,Human Capital Management and Incentive Compatibility Theory,the thesis refers to the different opinions of worldwide scholars in recent years,and the approach of literature research and comparative analysis to study the equity incentives implemented by PD Group.Firstly,the thesis analyzes the company's generalization,organizational structure and salary structure of the PD Group.Secondly,by demonstrating the implementation effect of equity incentives,combined with the group's annual reports,announcements and other information,the thesis analyzes the problems in the implementation process of PD Group's equity incentives.Unreasonable incentive factors affect the effect of incentives,imperfect assessment systems restrict exercise,and detailed safeguards hinder the implementation of incentives.Finally,the thesis gives suggestions for improvement on the issues raised.The research of the thesis helps PD Group to design the equity incentive plan,to make it implement smoothly and to play the expected role.At the same time,the proposed improvement can be applied not only to the PD Group,but also to the design and implementation of equity incentive schemes for other companies in the same industry.