A Case Study On The Failure Of Equity Incentive In High And New Technology Listed Enterprises

After long time development,equity incentive has been relatively mature in western countries,such as the United States.Equity incentive started relatively late in China.In 2005,the relevant laws and regulations promulgated by the state began to develop gradually.By the end of 2017,more than 1000 enterprises have carried out equity incentive,but the implementation of equity incentive is not smooth.At present,there are still a lot of enterprises' equity incentive plans failed to be successfully implemented.Under the condition that the development of equity incentive is not mature in China,it is necessary to study the failure of equity incentive,to find the reasons for the failure of equity incentive and to put forward suggestions and suggestions.In terms of industry,equity incentive is the most widely used in high-tech enterprises.This is because it can closely link the interests of employees with the performance of the enterprise in the long term.At the same time,it can also solve the contradiction of insufficient funds and incentive.Therefore,the number of high and new technology enterprises in our country introduces a lot of equity incentive,but there are many abortions in the scheme of introducing equity incentive.Therefore,it is of great significance to study the failure of equity incentive in the high-tech enterprises combining with the current situation of the development of equity incentive in China.Therefore,this article takes the pesticide industry which belongs to the high and new technology field,and selects the new high-tech representative enterprise as an example.This paper analyzes the stock option incentive plan launched in 2009 and the stock option and the restrictive stock incentive plan launched in 2015.It analyzes the failure of the two incentive plan,finds out the reasons for the failure of equity incentive,and then puts forward some suggestions and suggestions.First of all,it is found that the stock option incentive plan does not improve the company's operating condition in the time of existence,and the ability index of the enterprise has not been improved obviously.Then,it also leads to the failure of the right to travel on time,which is doomed to the failure of equity incentive.The duration of stock option and restricted stock incentive plan is short,and the announcement of the termination of the implementation of the company marks the end of the failure of equity incentive.The two failure reasons are different.The failure of the first equity incentive is mainly due to the unreasonable design of the incentive scheme,the uncertainty of the motivation and the unreasonable setting of the right index.The failure of the second equity incentive is influenced by various internal and external factors,mainly with the poor overall development of the industry and the State Administration.The laws and regulations are more stringent,the scandals of the subsidiary companies,the improper development strategy of enterprises,and the unreasonable setting of the exercise rights index.At the end of this paper,we suggest that the enterprise should formulate a reasonable and unique equity incentive plan according to its own development state and actual needs,optimize the design of equity incentive,including setting specific and targeted incentive purposes,expanding the scope of the motivational object and setting up the diversified right conditions;at the same time,it suggests that the enterprise should finish.The internal management of the environment will reduce the barriers to the smooth ownership incentive,such as the diversified forms of performance assessment,and on the macro level,it is suggested that the government should improve the external environment of the enterprise and protect the development of the enterprise.