Study On The Implementation Effect Of Equity Incentive In Hengrui Pharmaceutical

With the continuous development of China’s economy,the application of equity incentives in enterprises has become increasingly widespread,and with the introduction of relevant documents,this mechanism has gradually matured,and has played a role in improving corporate governance,attracting and retaining outstanding talents,and promoting the long-term development of enterprises.Plays an important role.As a typical representative of the pharmaceutical manufacturing industry,Hengrui Pharmaceutical first introduced the equity incentive plan in 2010,and successively introduced equity incentive plans in 2014 and2017,and achieved certain results.This article takes Hengrui Medicine as the research object,analyzes the background,motivation and scheme design of its equity incentive implementation,and explores the effect of its equity incentive implementation,hoping to provide some reference and reference for companies to implement equity incentives.This article first sorts out the relevant literature on equity incentives,analyzes the mechanism of this mechanism based on the concepts and theories of equity incentives,then introduces the motivation,process and program design of Hengrui Pharmaceutical’s implementation of equity incentives,and finally focuses on the equity of Hengrui Pharmaceutical The financial and non-financial effects of incentives are analyzed.The study found that equity incentives can enhance corporate value in both content and form.The implementation of this mechanism has indeed had a certain positive effect on the development of Hengrui Medicine: in terms of financial effects,Hengrui Medicine has maintained a good performance since the implementation of equity incentives.Level of financial performance and outstanding performance in the industry;in terms of non-financial effects,Hengrui Pharmaceutical’s various indicators performed well.In addition,the study also found that the effectiveness of equity incentives depends to a large extent on the rationality of the scheme design.After analysis,this article concludes that Hengrui Pharmaceutical’s equity incentive scheme is relatively reasonable and worthy of reference by other companies;Defective elements need to be improved.Based on the above conclusions,this article puts forward relevant suggestions for Heng-rui Medicine and other enterprises on the equity incentive plan.First of all,based on the shortcomings of Hengrui Pharmaceutical’s equity incentive plan,this article recommends that the company should improve the setting of exercise conditions,scientifically select assessment indicators,and reasonably grasp the difficulty of exercise conditions to better achieve the incentive effect;in addition,it should also be appropriate Extend the effective period of incentives,further focus on long-term impact,and promote sustainable development of enterprises.Secondly,based on the successful experience of Hengrui Medicine,this article recommends that other relevant companies in the setting of equity incentive plans should reasonably choose their incentive targets in accordance with their actual conditions,and at the same time,they can enhance the continuity of equity incentive implementation in order to continuously learn from the implementation And make adjustments to meet the development needs of enterprises and obtain good incentive effects.