A Comparative Study Of Supor's Equity Incentive Schemes Under The Change Of Controlling Rights

As a new form of internal governance,equity incentives can well alleviate agency problems,and it has become more and more widely used in Chinese enterprises.The nature of property rights is an important variable in corporate governance.How the change of the nature of property rights affects the reform of equity incentive schemes and the effect of incentives is a question worthy of study.Zhejiang Supor Co.,Ltd.has gone through the process of changing from family holding to foreign holding.In this process,equity incentives have also undergone corresponding changes.Therefore,this case is very classic and worthy of in-depth discussion.This article first summarizes the research background and research significance,and then elaborates related theories.In the case analysis part,the development background of the case company is introduced,and the process of its property rights change is explained.First,the four sets of equity incentives in the two stages are described in detail,and the number of equity incentives granted,incentive objects,incentive models,incentive periods,exercise prices,and exercise conditions are introduced through the table.Then list the different backgrounds and motivations of the equity incentives implemented in the two stages before and after the change of controlling rights: In the family holding stage,the company is affected by relevant laws and regulations and the internal governance structure needs to try equit y incentives for the first time,but due to the nature of the company,equity Incentive schemes tend to be self-interested,and the agency problems are not well alleviated,and the incentive effect is not obvious;at the stage of foreign holdings,companies are facing internal and external troubles and want to retain talents through equity incentives and promote enterprise innovation and development.There are problems in the second phase of equity incentive schemes After the changes,the third and fourth phases of equity incentive plans have played a very good incentive effect.When analyzing the effect of equity incentives,the results of the exercise,market reaction,investment level,talent reserve,and agency cost are five Comparative analysis from different perspectives.Finally,through analysis and research,it is found that the equity incentive measures implemented by Supor in the two phases have their own advantages and disadvantages,and there are points worthy of reference or reflection under different property rights.Therefore,from the appropriateness of the equity incentive plan design and the duration of the equity incentive,Equity incentive model and other perspectives provide suggestions for the implementation of corporate equity incentives.According to the research conclusions,this article believes that with the change of controlling rights,the design of equity incentives should also be changed accordingly.After the controlling rights are changed,the tools,number of people,scope and difficulty of exercise of equity incentives can be adjusted according to the internal and external conditions of the company.Improve the corporate governance effect,but equity incentives are also a "double-edged sword." The lack of scientific design may also make equity incentives a tool for management to gain personal gain.