Research On Equity Incentive Plan Of Company D

As social development progresses,human capital has become the core capital in the process of enterprise development.Compensation as a short-term incentive can no longer meet the needs,while equity incentives,as a long-term incentive mechanism,is one of the important means to solve the principal-agent problem commonly existing in modern enterprises.Equity incentives originated from the United States in the1950 s.Fizer Corporation designed and launched the world’s first stock option plan in1952,which opened the curtain on equity incentive plans.In 1956,the first employee stock ownership plan was introduced by the US Penney-Sulah Newspaper Company.In the 1980 s and 1990 s,with the economic boom,equity incentives in the United States experienced a large development,and long-term incentive compensation accounted for nearly 30% of the total compensation of executives.During the same period,various forms of equity incentives were also implemented in some countries in Japan and Europe and had positive effects.Relevant laws and regulations were also gradually improved in the exploration process.By the end of the 20 th century,equity incentives had been widely implemented in corporate governance in developed countries such as Europe and the United States,triggering a trend of implementing equity incentives,and more than 80% of companies had used equity incentives for corporate governance.The implementation of equity incentive plans in China’s listed companies started relatively late and can be roughly divided into three stages: the period of exploring equity incentive business from 2006 to 2010,with an average annual announcement of only two-digit numbers;the period of steady growth in the number of equity incentive plan announcements from 2011 to 2015,which is the promotion period of equity incentive business;and since 2016,it has become a normal period of equity incentives,and the business scale has increased significantly.As of December 31,2022,a total of 2,624 A-share listed companies in China had implemented equity incentives,with the incentive scope accounting for approximately 51.79% of all listed companies;as of December 31,2022,a total of 1,086 A-share listed companies had announced employee stock ownership plans,with a coverage rate of approximately21.43%.Company D was established on December 16,2011.It is a global leading innovative new energy technology company that provides first-class solutions for global new energy applications and has now grown into a global leading lithium-ion battery supplier.According to SNE Research,the company’s installed capacity of power batteries ranked first in the world from 2017 to 2021 and from January to November 2022.The company was listed on the Growth Enterprise Market on June11,2018,and conducted its first equity incentive plan in the following month.Since then,it has maintained a frequency of one period per year and has achieved good incentive effects,demonstrating a good example of equity incentives in the new energy industry.Based on a review and summary of relevant literature and theories on equity incentives,this article introduces the equity incentive plan of Company D and conducts a related analysis.In the analysis,comparable companies in the same industry and period are introduced as comparison objects to objectively evaluate the positive effects of Company D’s equity incentive plan.The relevant factors are sorted out to identify the shortcomings of the plan,and suggestions for improvement are provided with inspiration from examples.It is hoped that this article will provide some reference value and reference significance for other listed companies in designing and implementing equity incentive plans.