The Research Of Comparative Analysis Between Equity Incentive Plan And Employee Stock Option Plan Of Company R

Equity incentive plan and employee stock option plan have been important tools of corporate governance for listed companies in China.It is important to promote the modernization of corporate governance capabilities of listed companies and promote the healthy development of capital markets by comparing the system,scheme design and economic consequences.This paper uses company R as a research case to compare and analyze the impact of equity incentive plan and employee stock option plan on shareholders,incentive targets and enterprise.The study found that the difference in the stock source of the employee stock option plan and the equity incentive plan will have different dilution effect on the equity of other shareholders of the company.Only in the non-public issuance method will it dilute the existing shareholder equity.The stock number both equity incentive plan and employee option plan are limited by the corresponding policy,so it will not affect the control of the company.The employee stock option plan and the equity incentive plan have different effects on the incentive targets.Both of them have the effect on improving employee income and retaining employees.However,the employee stock option plan has a wider range of incentives If leverage is used,implementing an employee stock option plan will amplify the financial risk of the incentive target.In terms of the economic consequences for the company,both the equity incentive plan and the employee stock option plan can promote the growth of the company's size,financial performance and value.Based on the above research conclusions,in order to play the positive role of equity incentive plan and employee stock option plan in corporate governance the article puts forward policy recommendations from the perspectives of preventing leverage risk,strengthening information disclosure supervision and improving regulatory policies.