The Equity Incentive Project Design Research Of The FLYCO Company

In today’s rapidly changing business environment and increasingly fierce competition among enterprises,the competition for talents has gradually surpassed the competition for other resources and become an important embodiment of the real strength of an enterprise.However,since the development of modern enterprise system,the family management mode is no longer prevalent.Most modern enterprises have separated the right of management from the right of ownership,and the owners employ professional managers to manage the enterprises.This behavior not only brings development opportunities to the company,but also directly leads to the emergence of principal-agent problem.Due to information asymmetry,when the interests of the operator and the owner are not consistent,the operator uses its own advantages to make decisions that will harm the interests of the company and harm the long-term development of the enterprise.To some extent,the emergence of equity incentive system alleviates this drawback,which is also the basic reason for the emergence of equity incentive system.With the extensive publicity and recognition of equity incentive,equity incentive system,the longterm incentive measure,has become a means used by many listed companies or unlisted companies to motivate employees.This paper takes FLYCO Electrical Appliance Co.,Ltd as the research object.First of all,it starts with the development status of equity incentive system and the basic situation of FLYCO electric appliances to clarify the research background and significance of this paper,and sorts out the existing research results at home and abroad from the aspects of relevant equity incentive model,scheme elements and incentive effect.Secondly,it introduces the concept of equity incentive,several common models and the basic elements of equity incentive scheme,and introduces three main theories of equity incentive.Including management incentive theory,principal-agent theory and human capital theory.Leaves to the necessity and feasibility of the implementation of equity incentive is analyzed,according to the basic situation of the company and the industry,from establish risk-sharing,corporate strategy,attracting talent to fly three aspects,such as electric paper expounds the necessity of introducing the equity incentive,from a legal mechanism,motivating the timing,the corporate governance structure,financial strength and so on four aspects to fly the feasibility of the implementation of equity incentive is analyzed.After that,the overall scheme of FLYCO’s equity incentive plan was designed in detail,including the purpose and basic principles of FLYCO’s equity incentive plan,the choice of incentive objects and models,the source and quantity distribution of targets,time arrangement,exercise conditions and other elements of the design.Finally,this paper introduces the guarantee mechanism of FLYCO equity incentive plan,including perfecting the equity incentive management system,establishing a sound regulatory system and strengthening the dynamic management of the incentive plan.Through the detailed design of the equity incentive plan of FLYCO,this paper hopes to provide some reference for private listed companies to launch equity incentive plan.