Design Of Equity Incentive Scheme For Core Employees Of S Company

Compared with the short-term incentives such as wages,salaries and benefits,the equity incentive has some better incentive effects as a long-term incentive mechanism.More and more companies begin to try to use it,because it can retain the company’s core employees,attract external talents,and combine the interests of shareholders,managers and employees closely.S Company as the research object,is a mature non-listed private company belonging to the education Internet industry,whose main business includes academic education and vocational education.Due to the large flow of talents and fierce market competition in the education industry,we decided to formulate the equity incentive plan for the core employees.And the core employees will have a better motivation to develop together with the company.Based on such background conditions,this paper proposes an equity incentive plan of restricted stocks in view of the development status of S company,the problems existing in equity incentive and different incentive objects.Under the guidance of principal-agent theory and others,this paper mainly combined with the domestic and foreign equity incentive research status as the basis of research.After fully understanding and summarizing of the characteristics,influencing factors and current situation of equity incentive of non-listed companies,this paper provides some references for S Company to formulate equity incentive plan.After the questionnaire survey and in company S,I have a deep understanding on compensation and incentive status,satisfaction and implement equity incentive will of company’s core staff.And it is the starting point of the equity incentive plan.Then I summarize some problems and reasons of company’s equity incentive and formulate some principles and objectives of the scheme.This paper believes that the restricted stock is more suitable for S Company and designs the equity incentive scheme from the aspects of determining the mode,object,price,quantity,exercise conditions and withdrawal of equity incentive.Finally,it is hoped that the proposed equity incentive plan for core employees can provide some reference for other non-listed companies with similar situation,and more importantly,it’s hoped that it can provide a referential case for the equity incentive of non-listed companies in China.