Study On The Design And Implementation Effect Of Continuous Equity Incentive Scheme For Weiming Environmental Protection

Equity incentive,as a kind of long-term incentive,can alleviate the principal-agent problem to some extent and coordinate the interests of shareholders and operators.Although the exploration and practice of equity incentive started late in China,the number of enterprises implementing equity incentive has increased year by year in recent years,and the phenomenon of implementing continuous multi-period equity incentive plan has become increasingly normal in listed companies.Whether the design of equity incentive plan is appropriate,whether equity incentive has achieved the expected effect,whether the implementation of continuous multi-period equity incentive plan has achieved the purpose of sustainable incentive,so as to achieve the long-term strategic goals of enterprises,these problems are worth thinking and need to be verified through case analysis.This paper takes Zhejiang wei-ming environmental protection co.,LTD as the research object,first time points to its equity incentive plan design,the choice of the ways of incentive,incentive object and equity scale is analyzed,and the use of incentive theory,principal-agent theory,human capital theory,schumpeter innovation theory,corporate governance theory and so on for four consecutive equity incentive motivation is analyzed.Secondly,event study method,financial index and non-financial index method were used to analyze the implementation effect of continuous equity incentive of Weiming Environmental Protection,and on this basis,the successful experience of the implementation of continuous equity incentive program of Weiming Environmental Protection was summarized,the existing deficiencies were pointed out,and optimization suggestions were put forward.Finally,the conclusion is drawn.This paper finds that in order to achieve better equity incentive effect,the company should extend the incentive validity period,establish multi-dimensional assessment system,set reasonable exercise conditions and improve internal governance.It is expected that the research conclusion can provide reference for the design and implementation of equity incentive plan of other enterprises,in order to make their equity incentive plan more suitable for the actual situation of enterprises and achieve the expected effect.