The Research On Optimization YGSOFT INC' Equity Incentive

With the rapid development of modern economy,the separation of enterprise ownership and control rights occurs,and the resulting principal-agent problem has become a major obstacle to the development of the company.Supervision and incentive are two ways to solve this problem,among which incentive is an effective way to alleviate the principal-agent problem.As a kind of long-term incentive equity incentive system,on the premise of some performance conditions,giving managers due rights and interests,so that they can share the wealth of the enterprise to increase,this changed the operator's own positioning by means of bundling,will their personal interests and long-term interests of the company to maintain,this can increase the operator's enthusiasm,make its and shareholders to have consistent goal more,achieve a win-win effect.In our country,although there are many enterprises to carry on the equity incentive to try,but due to the imperfect incentive system and weak efficient stock market to equity incentive effectiveness of the block,so in the process of implementation of equity incentive,there are a lot of problems,such as the manipulation of profits,some companies in order to achieve the exercise conditions whitewash financial statements,financial fraud;There are also some companies because it sets up the not comprehensive analysis its unreasonable conditions of exercise,exercise caused failure,loss of talents,therefore,design a set of scientific incentive scheme is particularly important.Through theory with practice,this paper adopts the method of case analysis,to YGRJ as an example,analyses the design and implementation of equity incentive plan,find the main problems of equity incentive plan is(1)don't match the incentive model with the company's development strategy;(2)the condition of line weight(unlock)is too simple;(3)unreasonable allocation of validity period and unlock ratio.In view of this situation,the equity incentive scheme of YGRJ was optimized:(2)set multiple line rights(unlock)conditions;(3)extend the incentive period and allocate the unlocking ratio scientifically.This optimization will help some enterprises to design equity incentive plans more carefully and enhance the incentive effect.