Design And Research Of Equity Incentive Scheme Of Company Y

Equity incentive is an effective incentive method for enterprises to motivate employees in the medium and long term,attract and stabilize talents,and build risk sharing and benefit sharing between employees and enterprises,and has been increasingly favored by the majority of enterprises in recent years.However,the existing application of equity incentive mainly focuses on listed companies,and most of them are empirical studies on the effect of incentive after incentives.The majority of non-listed companies,especially some private enterprises with development potential and development needs,are often unable to correctly use the tool of equity incentive due to insufficient knowledge reserves,imperfect internal management system,lack of targeted guidance and case reference,etc.,and some carry out equity incentive but cannot achieve the expected results,and even cause equity disputes.This paper discovers and understands this demand,and takes company Y as the research object to make a detailed design for the equity incentive plan of company Y according to the characteristics and actual situation of non-listed companies.It is hoped that it can provide useful reference for other unlisted enterprises with similar circumstances and intention to carry out equity incentives.Firstly,this paper studies and reviews the relevant theoretical support of equity incentive and domestic and foreign literature,and more comprehensively shows the essence of equity incentive and the effect and impact of equity incentive in different enterprise nature,different incentive objects and different incentive modes,providing a broader observation perspective and display space.Secondly,taking Company Y as the research object,the method of single case study was adopted,and the needs of enterprises were gradually understood through interviews and questionnaires,and the original performance appraisal system,evaluation and promotion system were adjusted and reformed by introducing the balanced scorecard principle and analytic hierarchy tools to assist in the internal management of enterprises,which provided an institutional guarantee at the executive level for equity incentives.Finally,the equity incentive plan of Company Y was carefully designed in terms of the selection of equity incentive tools,incentive targets,quantitative issues of share source and pricing,source of dividends and exercise of rights,and exit mechanism.Through the design of the equity incentive plan of Company Y,the relevant research scheme and beneficial experience are obtained,which are summarized as follows:(1)The equity incentive requires the supporting construction of relevant systems,especially the construction of performance appraisal system and promotion mechanism.There are many deficiencies in the equity incentive,and the construction and optimization of relevant systems will greatly improve the smoothness of the implementation of the equity incentive plan.(2)The introduction of the balanced scorecard principle can provide a huge improvement in the traditional performance appraisal of enterprises.Traditional KPIs and other single performance appraisal models often only focus on the consideration of financial indicators,and cannot fully evaluate the real work benefits of employees and guide employees to jointly strive for corporate strategy.Through the introduction of the balanced scorecard principle,the introduction of four dimensions such as finance,customers,internal management,learning and growth,a multi-level comprehensive performance evaluation system has been established,which provides a solid platform support for the long-term sustainable development of the enterprise.(3)Enterprises need to make long-term and comprehensive preparations for equity incentives,formulate a clear development strategy and goals,and conduct a comprehensive investigation and analysis of the past financial status,the compliance effectiveness of internal management,and the real thoughts of grassroots employees.Equity incentive is a systematic long-term work,any equity incentive that wants to simply make a show and only strive for short-term benefits is unscientific and cannot be implemented for a long time.The equity incentive plan of Company Y is planned to be carried out in 2023,and I will continue to participate in the revision of relevant data and optimize the incentive link before the actual implementation of the incentive plan,and collect relevant data in a timely manner during and after the incentive implementation to complete case analysis and optimization.It forms a system-wide equity incentive plan including design,execution and optimization,and improves the significance and level of thesis research.