Research On The Design And Implementation Effect Of Continuous Equity Incentive Scheme Of Tigermed

As a long-term incentive method,equity incentive was originally intended to solve the problem of entrustment and agency caused by the separation of enterprise ownership and management rights.However,with the development of equity incentives,its role in enterprises has become increasingly prominent,helping enterprises stabilize core talents,promote technological innovation,and improve performance.Therefore,the implementation of equity incentives by listed companies in China is becoming more and more common,especially in industries such as semiconductors,pharmaceuticals and information technology services.However,at present,most enterprises have only successfully implemented one or two equity incentive plans,and the incentive period is relatively short,and the implementation effect is not obvious.Continuous equity incentive is a product of the late development of equity incentive,and it is also a new incentive scheme launched by listed companies according to the development status of the company.At present,there are few literature and case studies on continuous equity incentives,so it is worth considering and verifying whether the design of the continuous equity incentive scheme is appropriate,what are the motivations for the implementation of the enterprise,how effective the implementation is,whether the expected goals are achieved,and whether the plan can be further optimized.This paper selects Hangzhou Tigermed Pharmaceutical Technology Co.,Ltd.as the research object,focus on pharmaceutical enterprises,and first clarifies the specific elements of the five equity incentive plans: incentive model and incentive object,equity scale and stock source,grant price,exercise conditions and implementation process,etc.,and analyzes the motivation of the five consecutive equity incentives by relying on the principal-agent theory,two-factor incentive theory,corporate governance theory,human capital theory,and innovation theory.and analyze the implementation effect of Tigermed continuous equity incentive with the help of market response,financial performance and non-financial performance;In this way,the successful experience and existing problems of Tigermed Pharma’s continuous equity incentive plan were explored and optimization suggestions were put forward.Finally,the research conclusions of this paper are concluded.This paper finds that the benefits of continuous equity incentives outweigh the disadvantages to Tigermed,but in order to achieve better incentive effects,it is necessary to scientifically set exercise conditions,,weaken welfare,reduce the overlap of equity incentives,and improve the incentive conditions for executives.It is hoped that the research conclusions of this paper can provide useful references for other listed companies to improve their equity incentive plans,and help enterprises achieve long-term development and expected goals after implementing equity incentives.