Research On Incentive Performance Of Restricted Stock Of H Company

As a long-term mechanism to motivate employees to work for the company,equity incentives started relatively late in China,and the revision of relevant equity incentive policies in 2016 provided policy guarantees for listed companies to practice incentive mechanisms.In November 2019,the State-owned Assets Supervision and Administration Commission issued the Notice on Further Improving the Equity Incentive Work of Listed Companies Controlled by Central Enterprises,which further standardized the requirements for equity incentives for state-owned listed companies,reflecting the Chinese government’s political ideology of expecting to guide listed companies of central enterprises to further strengthen equity incentives at the regulatory level.With the continuous maturity of China’s equity incentive policy,more and more listings have begun to practice the incentive plan,which is intended to enhance the company’s competitiveness,improve the company’s core strength,and attract and retain high-quality talents.In this paper,combined with the literature and theoretical basis related to equity incentives,the H listed companies in the security industry are selected for analysis.First of all,this article introduces the company’s overview,the motivation,plan and exercise of the restricted stock incentive,and summarizes the characteristics of the company’s restricted stock incentive plan and exercise.Next,this paper uses the event research method,factor analysis method,and the combination of financial indicators and non-financial indicators to analyze the short-term market reaction,horizontal and vertical long-term performance,innovative research and development results and employee turnover rate changes caused by the company’s incentive plan.The results of the study found that the restricted stock incentive of H Company has brought the effect of performance growth,R&D efficiency improvement and core talent attraction to the company.Finally,on the basis of the performance of the listing,this paper finds that the company’s incentive plan still has room for further improvement in the reasonable allocation of the number of stocks,the selection of incentive plan indicators and the degree of control of the intensity of the indicators,and proposes three feasible countermeasures for the above problems,that is,the reasonable distribution of the number of shares granted to employees at different levels,the enrichment of the company’s performance appraisal indicators while formulating personal appraisal indicators that match the position,and the establishment and improvement of the responsibility investigation and punishment system.It aims to improve the scientific and long-term effectiveness of H Company’s equity incentive plan,and then provide it to other listed companies for reference and learning,so that they can design equity incentive plans that conform to the actual development of the company.