Research On The Improvement Of The Equity Incentive Scheme Of NZ Company

As an incentive tool,equity incentives can promote the sustainable development of the company.This paper selects NZ company as the research object and studies the implementation effect of the company’s equity incentive plan.Mainly focusing on the research background,this paper briefly summarizes the relevant idea,theoretical foundations and effects of equity incentives.Based on this,the company is introduced,and on this basis,the situation of this equity incentive plan is studied,and the motivation for its implementation of the incentive mechanism is analyzed.Then,by reviewing and organizing the announcement of the company’s equity incentive,summarizing relevant data,conducting in-depth research on the content and implementation process of its incentive plan in both financial indicators and non-financial indicators,analyzing the changes before and after the implementation of equity incentives,and comparing with the same industry to see whether it has achieved its issuance purpose and digging out the problem of failing to achieve the desired effect.Through the above research,this paper analyzes the equity incentive plan of NZ company and summarizes its problems in the formulation and implementation process.The following conclusions are drawn: 1.The implementation of equity incentives has a certain effect on improving the company’s financial indicators in terms of improving its performance,and the indicators of operating capacity and growth ability have been improved after 2017;Although the solvency index has improved compared with itself,it is still not as good as the industry average,and the change is not obvious;Profitability metrics have no significant effect.Second,in terms of improving the construction of talent team,from the perspective of non-financial indicators,the implementation of equity incentives is quite limited for technical personnel,and it has not played any role in talent stability.Third,in reducing the problem of entrusted agency,from the perspective of strategic development,R&D investment and achievement transformation have played a positive role.Generally speaking,the purpose of the implementation of equity incentives has not been fully realized.Through analysis,the reason for these phenomena is that there is a risk of manipulation if only comprehensive financial indicators are used as unlocking conditions.There is also a shorter incentive period,which can make the incentive effect unsustainable.The lack of connection between incentive plans and positions and insufficient supervision of the implementation process can make employees less motivated.The single method of equity incentive is easy to amplify the problems of this method.Therefore,Here are some suggestions for optimization put forward these problems:establish reasonable unlocking conditions to stimulate the potential of employees.Establish scientific incentive deadlines to make incentives sustainable.Effectively combine programs and positions to enhance employee enthusiasm.A combination of ways to maximize strengths and avoid weaknesses.Strengthen process supervision and establish a good constraint system.At the same time,in order to ensure the feasibility of the recommendations,this paper also proposes the following safeguard measures:improve the corporate governance structure and strengthen the constraints on executives.Improve the career planning system and retain core talents.Optimize the salary performance system and mobilize the enthusiasm of employees.Conduct appropriate training and get positive feedback.Strengthen the disclosure of company information and enhance the supervision of the company.These measures are intended to promote the healthy development of the company and provide a development direction for the company’s next implementation of equity incentives.It also provides reference for other enterprises to implement the equity incentive system.