Case Analysis Of TH Company's Implementation Of Equity Incentive

Equity incentive is a kind of employee incentive method.By granting certain company equity to the employees of the company,they can participate in the enterprise construction as shareholders,and bear certain enterprise risks while sharing the residual profits of the enterprise.In order to motivate its due diligence for the long-term development of the company.The equity incentive system has a solid theoretical foundation and a rich practical foundation,so many enterprises have adopted this way in the process of development.Environmental protection and facilities service industry is a rising industry in recent years,and with the explosive expansion of related markets and growing,listed companies in the industry as market pioneers and leaders,extremely need the advanced management system depends on the professional management team.Therefore,in order to enhance the sense of belonging of the employees,encourage their consciousness of struggle and make the enterprise stand out in the comprehensive competition,listed companies in China's environmental protection and facilities services industry have launched equity incentive plans one after another.This thesis mainly uses the case analysis method to introduce,discuss and evaluate the past three times equity incentive scheme of the TH Company in detail,and puts forward the corresponding countermeasures and suggestions in view of the problems existing in the process of implementing equity incentive.Firstly,this thesis briefly introduces the present situation of equity incentive of listed companies in China and the present situation of equity incentive of the TH Company,so as to clarify the background of case study.Then,the thesis reviews the past three stock incentive schemes of the TH Company,evaluates the incentive effect and explores the reasons for the success or failure of equity incentive.Finally,the conclusion of the case analysis is extended to summarize the TH Company and other listed companies as representative enterprises.The common problems in the implementation of equity incentive are discussed,and the countermeasures and suggestions are put forward to the related parties of the equity incentive plan.The main reasons for the success of the equity incentive plan are as follows: reasonable choice of incentive mode,reasonable control of incentive time and so on.According to the reasons of the analysis,the corresponding countermeasures and suggestions are put forward,which provide lessons for the successful implementation of equity incentive next time.However,the main reasons for the failure of TH Company's equity incentive plan are: unreasonable setting of exercise conditions,unclear orientation of development direction,failure to formulate equity incentive plan according to current situation,and so on.These problems are found in other listed companies.There are also widespread equity incentive plans in the market.As a result,some of the equity incentive plans in the market have ceased to be implemented ahead of time.Although more equity incentive plans are generally implemented,such as the first equity incentive plan of the TH Company,the result is undoubtedly a failure.Regulators must also shoulder their responsibilities to remedy and improve past omissions and loopholes in the process of approving equity incentive plans.