The Impact of Equity Incentive on Enterprise Performance: A Case Study of Jiuyang Shares

Abstract

There are more and more listed companies that implement equity incentive in China, and most private listed companies take advantage of this favorable opportunity to speed up the implementation and launch of equity incentive schemes. However, due to insufficient prediction of the actual situation and development trend, the original incentive objectives can't be achieved smoothly and the corresponding effects can't be achieved. This paper takes Jiuyang as the research object, analyzes the implementation process of its equity incentive plan, and digs out the problems existing in the basic elements of the equity incentive plan design, such as unreasonable exercise price and conditions, single incentive object level, low performance index requirements and other common problems in the equity incentive plans of listed companies in China. This paper puts forward optimization suggestions from multiple dimensions, which is beneficial for listed companies to make reasonable incentive plans for themselves, and also for other listed companies in China.Division provides case experience support.