| Equity incentive is a long-term incentive method adopted by enterprises to motivate internal core talents.By sharing corporate profits,managers can avoid short-sighted behaviors,and play an important role in improving corporate performance,attracting core talents,retaining core competitiveness and realizing corporate interest community.Zhejiang Weixing New Material Co.,LTD.,founded in 1999,was listed on the A-share medium and small-sized board in March 2010,issuing 63.4 million shares at 17.97 yuan.Since its listing,Westar Has been taking equity incentive as a necessary way for the development of the company,and implemented three phases of equity incentive in 2011,2016 and 2020 respectively.During this period,the net profit of Wei Xing Xincai increased from 219,252,500 yuan in 2011 to 1,192,617,500 yuan in 2020.The outstanding development trend of the company in the past ten years is directly related to the implementation of sustainable development strategy and the importance attached to the survival of core talents.It is worth studying how the successful implementation of the equity incentive of Weixing New Material will bring enlightenment and reference to the equity incentive of listed companies in the medium and small board and pipe industry in China.The thesis adopts the research method of case analysis.In the theoretical part,the definition,basic elements,principal-agent theory and other related concepts and basic theories of equity incentive are described.The case analysis part first introduces the general situation of Weixing New Material,the specific content of the formulation of weixing New Material’s three equity incentive plan and the motivation of the company to implement equity incentive;Secondly,it makes a comparative analysis of the equity incentive plan of Weixing New Material from four aspects,such as incentive mode.Finally,the implementation effect of equity incentive of Weixing New Material is analyzed from multiple perspectives,including short-term market reaction,long-term market reaction,changes in financial performance and other indicators before and after the implementation of equity incentive,as well as changes in various aspects from non-financial perspective.Through the analysis,it is found that the equity incentive of Weixing New Material has no positive effect on the short-term market reaction of the company;From the perspective of long-term market,the implementation effect of equity incentive is relatively excellent,bringing long-term benefits to the company’s market value and capital market.From the financial perspective,the implementation effect of equity incentive of Weixing New Material is good,which promotes the long-term stable development of the company.From the non-financial perspective,The equity incentive of Weixing New Material plays a role in retaining and attracting talents.Finally,the paper summarizes the successful experience and shortcomings of The equity incentive of Weixing New Material,Listed companies and the setting are summarized from the aspects of the design of the equity incentive plan reasonable incentives and the exercise price,develop a comprehensive performance evaluation system and index,reasonable arrangement of objects and incentive equity incentive allocation number in advance,improve the internal governance structure,test the market response and six to avoid surplus management reference and enlightenment.The research of this paper is helpful to improve the equity incentive plan of listed companies according to their own situation,improve the enthusiasm of employees and promote the sustainable development of enterprises. |
