Research On The Termination Of QDRS Company's Equity Incentive

With the improvement of modern enterprise system and the increasing complexity of company management technology,the equity of the company is gradually dispersed.The ownership structure of the company has evolved from a single share of the original family firm to a large joint-stock enterprise with the separation of control and ownership.The separation of control and ownership inevitably leads to the problem of agency and adverse selection.In order to solve these problems effectively,equity incentive came into being.In the 1950s,America's Fischer Company designed and launched the first stock option plan in the world,and developed widely in the following decades.Under the influence of developed countries,developing countries have gradually embarked on the road of equity incentive.China's equity incentive system started late.Compared with the developed countries,the development of China's equity incentive system is very slow,which does not match the rapid development of China's securities market.The scope of non-listed companies is relatively small,the corporate governance structure is not perfect and the complete conditions of implementing equity incentive are lacking.Therefore,compared with the listed companies,the non-listed companies implement less equity incentive schemes.At present,there are many researches on the effect of equity incentive of listed companies in China,but few scholars pay attention to the equity incentive of non-listed companies.Under this background,this paper takes QDRS Company under the environment of IPO as the subject investigated,Starting from the basic situation of QDRS,Reveal the internal and external background of implementing equity incentive plan,and introduces the specific content of its equity incentive plan and the process from its beginning to its termination.And then analyze the specific reasons for its termination including the lack of clarity of ownership due to the equity incentive plan and the impact of large management expenseson net profits due to share payments,Equity incentive has not reached the expected effect and Equity incentive leads to internal disharmony in the company.At the same time,it points out r problems existing in its equity incentive scheme.the way of employee stock ownership is unreasonable,time limit of equity incentive is too short.The time and personnel selection of equity incentive is not transparent,and the intensity and exercise conditions of equity incentive are unreasonable.Finally,some suggestions for the implementation of equity incentive plan for non-listed companies are put forward,including choosing the right timing for equity incentives,choosing a flexible incentive model,formulate scientific criteria for selecting incentives and improve corporate governance structure.Through this analysis,I hope to provide some reference for the implementation of non-listed company's equity incentive plan.