Research On Equity Incentive System Of Start-Up W Company

With the deepening of China's reform and opening up and the road of marketization being wider and wider,equity incentive has been paid intensive attention and is widely applied by Chinese enterprises.As a medium-and long-term incentive mechanism,it could solve the problem of high labor cost in the enterprises.At present,there are many researches on the equity incentive of listed enterprises in China,but it is rare to research this topic of start-up companies.At the same time,more researches are needed on equity incentive structure and so on in start-up companies.This paper takes the application of equity incentive mechanism of start-up companies as research subject,and selects W company as the research object with the methods as literature research,case study and field research.It discusses the current situation equity incentive structure,incentive method and incentive effect of W company.It proposes that W company has problems in equity incentive such as unreasonable equity layout,lack of equity pricing ability,lack of reasonable exit mechanism and lack of effective incentive mechanism.Based on analysis,the reasons of these problems are defective design of equity incentive,imperfect performance appraisal system of enterprises,and prominent internal governance structure.Based on above analyses five optimization plans are proposed.First,adjust the shareholding structure,design a dynamic shareholding adjustment mechanism and reserve an options pool.Second,set up the exercise conditions and pricing,so that the incentive objects can exercise conditions after achieving the performance assessment indicators,and entrust professional intermediary to work out scientific pricing mechanism.Third,select combinatorial equity incentive modes,and choose different combinatorial incentive modes according to different levels of personnel.Fourth,design a scientific and effective performance appraisal system,taking into account of short-term and medium and long-term,financial and non-financial factors.Fifth,establish effective termination and exit mechanisms,clearly stipulating exiting conditions,and repurchasing rights and repurchasing prices.In addition,it provides a series of countermeasures for the effective implementation of the optimization plan,aiming to promote start-up companies represented by W company to establish a scientific and perfect equity incentive system.