Research On The Implementation Effect Of Equity Incentive Of USISH

As a long-term effective incentive means,equity incentive plays an irreplaceable role in alleviating the principal-agent problem and reducing the cost of agent.In addition,equity incentive can also bring the interests of enterprises,executives,shareholders and employees into a line,and can better enhance the value of the enterprises.Equity incentive started relatively late in China until the 1990's.In order to improve their comprehensive strength,many enterprises began to actively try to implement equity incentive plan.However,Chinese capital market is still in a week effective state and the mechanism of equity incentive has not yet fully mature.The factors affecting the implementation of equity incentive cannot be predicted,and enterprises in different industry categories face different operating environments.So,not all enterprises implementing equity incentive plan can achieve good results.Therefore,this paper takes USISH as an example to study the implementation effect of equity incentive and provide theoretical and practical support for the development of equity incentive system.This paper chooses USISH as the case study object,on the basis of the domestic and foreign literature and relevant concepts and theories of equity incentive,analyzes the main elements and implementation motivation of the incentive plan of USISH.The implementation effect ofUSISH equity incentive is analyzed from two dimensions: financial performance and non-financial performance.Finally,based on the results of data analysis of it's implementation effect,this paper summarizes the successful experience of USISH equity incentive scheme,and proposes improvement measures for the deficiencies of it's design scheme.Through the analysis of the effect of the implementation of the equity incentive of USISH,it is found that the implementation of the scheme has a certain promoting effect on the improvement of the financial performance of USISH.Among them,the profitability and development ability have bigger promotion;solvency and operation capacity increase of smaller,but also is rising steadily,narrowing the gap with the industry and gradually catch up with it's main rival.Non-financial performance also improved significantly.But at the same time,the equity incentive plan has the problems of single equity incentive mode,too simple performance evaluation index and small number of stock grants,which is not conducive to the actual development of the enterprise equity incentive.Based on this article,while summarizing the successful experience of USISH,it also puts forward the following suggestions for external regulators and enterprises that want to implement the equity incentive plan:Before the implementation of equity incentive,enterprises should first fully understand the current situation of the industry and the characteristics ofenterprises,and formulate a scientific and reasonable equity incentive plan.Meanwhile,the regulatory authorities should strengthen the external supervision to provide a good institutional environment for the implementation of equity incentive.