| Equity incentive,as a kind of long-term incentive tools for executives,remits the principal-agent problems generating from the separation of ownership and managerial authority and helps to make it consistent with shareholder interests through equity granting to managers and employees.Equity incentive was born in the United States,and is regarded as a powerful method to promote the business operators and shareholders to form a community of interests in mature capital markets such as Europe,America and Japan.From the issue of"equity incentive management measure(trial)" in 2016 to the issue of several main projects in"equity incentive management measure" providing reasonable legal basis to the Chinese implementing of equity incentive,along with the gradually maturing environment and condition in Chinese capital market,the number of the implementation of equity incentive in the listed companies grew rapidly in China.And in 2017,there were as many as 240 companies implementing equity incentive in announcement.As of December 31,2017,the number of companies have announced equity incentive scheme reached 1154,of which 2017 new company number for 246,accounting for 21.32%.Zhejiang Weixing industrial Development is an enterprise selling textile,garment,and accessories.It has announced three terms of equity incentive plan since 2004.The paper starts with the introduction and analysis of the basic concepts of the equity incentive system and summarizes the basic types and characteristics of the current equity incentive tool,basing on principal-agent theory,human capital theory,incentive theory and residual claim theory.Through analyzing the background of implementation,incentive scheme design and the effect of evaluation of the incentive plan,I eventually found its equity incentive plan exiting problems like the narrow scope of incentive objects,pattern not matching,unreasonable performance indicators of exercise,manipulating exercising price and so on.Thus,I introduced advices like broadening the scope of incentive,hybrid excitation mode and improving the performance indicators and strengthening information disclosure and regulation and so on.As the representative of the manufacturing enterprises which have implemented the equity incentive many times,it has certain reference significance to the equity incentive system of similar enterprises. |
