The Performance Evaluation And Optimization Of Equity Incentive Plan

Under the development trend of economic globalization,many listed companies in China choose equity incentives as an important part of corporate governance mechanism.Through equity incentives,part of the economic rights of the company is given to the company’s executives and core technical talents in the form of equity,so that equity incentive objects can participate in corporate decision-making,share profits,and bear risks,so as to provide services for the long-term development of the company more conscientiously.With the rapid development of the domestic economy,measures such as equity incentives have slowly come into the eyes of enterprises.In order to improve corporate efficiency and reduce personnel turnover,different companies in different industries have chosen to implement equity incentives,and domestic and foreign attention and discussions on this have become increasingly fierce.Is equity incentive really a panacea? What kind of problems will arise in the implementation process? How can enterprises deal with and optimize problems when they encounter problems? These issues are worthy of our in-depth study and discussion.YUNNAN BAIYAO,as a leading enterprise in medicine industry,has a certain representative.Since its establishment,it has proposed an equity incentive plan for the first time.By analyzing the stock incentive plan being implemented in YUNNAN BAIYAO,the plan design,assessment target,implementation plan and incentive effect of YUNNAN BAIYAO are deeply discussed and studied.It is found that companies design and select of equity incentive plans are not the same,mainly depending on the company’s internal system and development direction.At the same time,through the current situation of YUNNAN BAIYAO equity incentive plan effect analysis,found that there are many problems such as unreasonable authorized price,single exercise way,incomplete assessment system,narrow coverage of incentive object.In response to these problems,I combined with the current equity incentive methods and the status quo of YUNNAN BAIYAO,proposed to establish comprehensive assessment indicators,reasonable determination of the equity incentive object,Improve information disclosure mechanism and other aspects of optimization design to improve the company’s equity incentive system.There are innovations in the research of this article.First of all,the research on equity incentives is not simply an analysis of the effects,but mainly to make optimizations and suggestions for the problems found.Secondly,this article selects YUNNAN BAIYAO,which is the first to implement equity incentives,as the object of analysis.Based on the background of the pharmaceutical industry and YUNNAN BAIYAO’s own situation,it analyzed the advantages and problems of implementing equity incentives for the first time,and further proposed an optimization plan.Finally,in the analysis process,the implementation effect of YUNNAN BAIYAO’s equity incentives is analyzed through new ways such as financial performance,market performance,and employee performance.The research in this paper provides a good idea for YUNNAN BAIYAO to further optimize its equity incentive plan,and for the same type in China pharmaceutical enterprise in the choice of selection,design,implementation,evaluation and other methods of equity incentives for the same type of pharmaceutical companies in my country.However,due to the lack of research on the equity incentive system in the pharmaceutical industry,coupled with the limitation of my knowledge level,the article has some shortcomings.In addition,because YUNNAN BAIYAO’s equity incentives are still in the implementation stage,relevant data may not be complete,and the entry points for questions and suggestions may not be comprehensive.It is hoped that future research on this subject can break through the above limitations and obtain new progress.