Research On The Equity Incentive Implementation Effect Of Pharmaceutical Enterprises

With the continuous development of market economy,the separation of ownership and management rights has become a trend.However,in this mode,due to the conflicts between the personal interests of the agent and the owner,there will be some agency costs,so many scholars have made extensive research on how to reduce agency costs.After the reform and opening up,China began to implement the market economic system,and the means of equity incentive governance in China began to prevail after the split share structure reform in 2006.In the development history of more than ten years,various enterprises have gradually found out the key control points of implementing equity incentive,but there is still room for progress in the design and implementation of the scheme.In this paper,Huahai Pharmaceutical Industry was selected as the research object.Firstly,it introduces the pharmaceutical industry as a whole,analyses the motivation and actuality of equity incentive in pharmaceutical industry,and further studies the implementation of equity incentive in pharmaceutical enterprises,and finds that the implementation effect is not very satisfactory.Huahai Pharmaceutical Co.,Ltd.,which is in the middle and upper reaches of the pharmaceutical industry,was selected as the case object,and the two equity incentive schemes implemented by Huahai Pharmaceutical Co.,Ltd.were analyzed in detail and in depth.Firstly,the design and implementation of equity incentive scheme in Huahai Pharmaceutical Industry are introduced.Secondly,the two equity incentive schemes in Huahai Pharmaceutical Industry are analyzed from three dimensions:operation effect,innovation effect and wealth effect.Finally,the equity incentive scheme in Huahai Pharmaceutical Industry is evaluated and recommended.In the case of Huahai P harmaceutical Industry,it is found that the incentive effect of the two stages of equity incentive is limited and not long-term,mainly due to the impact of internal and external environment and the problems in the design of the scheme.The company should start from perfecting the corporate governance structure,strengthening managers'cognitive concepts and equity incentive scheme design,so as to make equity incentive plan more scientific and achieve better incentive effect.