Private ENN Energy Company Equity Incentive Case Study

As an incentive method tomotivate the management and core employees,equity incentive is gradually adopted by listed companies.By studying the concept and principle of equity incentive,analyzing the design elements of equity incentive and evaluating the implementation effect of equity incentive,it can provide beneficial theoretical reference for listed companies to implement equity incentive.This paper takes the equity incentive plan of ENN energy as case data,comprehensive use of literature research,comparative analysis and thematic research,and draws reliable conclusions based on relevant scholars’ researches.Through the analysis and research of its equity incentive scheme design,including design objectives,principles and elements,analysis and summary of ENN energy in equity incentive scheme design gains and losses.Through the evaluation and analysis of the implementation results of its equity incentive plan,the advantages and disadvantages of ENN in the implementation of equity incentive plan are summarized from the aspects of personnel mobility,profitability,operation capacity,development capacity,market response and other indicators.After a study found that new energy in terms of equity incentive plan design,the elements have the equity incentive plan designis,have a certain flexibility in the way of equity incentive,the scope of the equity incentive object have a certain innovation on set,but in the equity incentive conditions of exercise on the setting of inappropriate,on the set of equity incentive cycle,does not take into account the different development stages of the enterprise,on the choice of incentives,does not take into account for different employees to set different ways;In terms of the implementation of equity incentive,it is found that ENN improves employees’ loyalty and corporate performance through the implementation of equity incentive,and improves the profitability,operation capacity and development capacity to some extent.However,it fails to establish a timely evaluation mechanism during the implementation of equity incentive.Finally,according to the advantages and disadvantages of ENN’s equity incentive plan in design and implementation,the author puts forward some Suggestions for improvement.