Research On The Motivation And Design Of Equity Incentives To The STAR Market

Equity incentive is widely implemented gradually in China.And many scholar conducted research on relevant problems.Now,study about equity incentive application and theoretical research are focused on the main board listed companies.With the development of GEM Market and SME Board,the study of object and scope was further broader and made much achievements.Since STAR Market established in 2019,more and more technology enterprises prepared to IPO and make equity incentive plan.However,at present,there are few research about STAR Market's equity incentive plan,and there is a lack of comprehensive understanding on it.Therefore,this paper choose equity incentive plan on STRA Market as the start and end point.Through this paper,can answer such questions:what are the motivations of these plans for STAR Market enterprises? Compared with the main board,what is difference on policies and plan features? And what can further develop or improve?Based on above objectives,this paper concludes the policies and the situation of equity incentive on STAR Market,and compared with the main board so that there is macro and whole understanding.Furthermore,select Montage as a case to analyze.And combined with its strategy,development stage,governance structure and other factors,analyze its plan motivation and design scheme for the purpose of obtaining referential experience,which could result in further improvement of practical environment and relevant policies as well as better development of equity incentive on STAR Market.Based on the whole environment of STAR Market and specific case,there are following conclusions: First,the policies of equity incentive on STRA Market is characterized by weak supervision and enhanced marketization,and under the loose environment,the plan of equity incentive is characterized by individualization.Second,Montage make incentive plan considering its business scope and development stage,which plan become one of the important rule to realize its strategy and display the highly individualization.Third,because of the industry pressure and characteristics,Montage hope retain the old employees and attract the new ones with equity incentive plan,which is similar with the most STAR Market enterprises;however,because of the defect of governance structure,managements generated self-interest motivation and cause unfair distribution,low performance setting,low exercise price and so on.STAR Market as a new board,there are many unknow areas to discover and research.Its equity incentive policies and implement situations are quite different from the main board.After shedding more light in the research area of equity incentive on STAR Market,this study hopes future papers can make endeavors on this research area for the further development and improvement.Based on the whole environment of STAR Market and specific case,there are following inspiration: First,perfect Chinese Capital Markets,enhance efficiency and make premium income of equity incentive can more fairly feedback the employees contribution and enterprise value.Second,relevant policies need more innovation and lead on the index and expected value of performance,and government need enhance information disclosure management.Third,company should perfect the governance structure,correct the motivation,and use more quantifiable financial and non-financial index under the permission of the policies to display the plan individualization and make equity incentive become a useful tool to help company sustainable development.