Research On Equity Incentive Scheme Of ZMKJ Co.,Ltd

With the gradual development and improvement of the market economy,professional managers have become the favorite of listed companies.However,with the information asymmetry between shareholders and management,different interest goals and other reasons,the principal-agent cost has become a prominent problem,and equity incentive has emerged as the times require.In foreign countries,the theoretical research on equity incentive is relatively mature and has withstood the test of the market after decades of development.However,equity incentive in China started late,and the market background and management system are relatively special,so we can not directly copy foreign research experience.In the process of exploration,China has gradually introduced the "Measures for the Administration of Equity Incentive of Listed Companies" and other policy guidelines,combining the "Company Law","Securities Law" and other rules and regulations,to provide institutional protection for enterprises to implement equity incentive.The LED display industry where ZMKJ Co.,Ltd.is located has experienced explosive growth in recent years.In order to stabilize the core technical talents and optimize the enterprise organizational structure,more and more enterprises have begun to implement equity incentive.Most enterprises have achieved the expected results,but also exposed many problems.This paper takes ZMKJ Co.,Ltd.,which has implemented three equity incentive plans,as an example.The main research contents include: the research status of equity incentive at home and abroad;The related concepts and theoretical basis of equity incentive,including the definition,main models,elements and related theoretical basis of equity incentive;The analysis of the status quo of the equity incentive plan of ZMKJ Co.,Ltd.,including the introduction of the company’s basic situation,the evolution of each plan,and the analysis and summary of each plan from the perspective of short-term market response,financial indicators and non-financial indicators.Through the above analysis,this paper concludes that the equity incentive plan of ZMKJ Co.,Ltd.has some shortcomings,such as single performance evaluation indicators,no review mechanism,and disputes over the list of incentive objects;The paper puts forward optimization suggestions on reasonably setting performance evaluation indicators,strengthening the internal supervision and restraint mechanism of enterprises,and improving the selection process of equity incentive objects.On the basis of the optimization suggestions,it also puts forward security measures for establishing equity incentive governance committee,timely information disclosure,and improving enterprise human resource management system.