A Study on Equity Incentive Schemes of Wangsu Technology Enterprises

Abstract

Because of differences in the internal and external environment and management of Chinese enterprises, the equity incentive system has not really played a role in promoting enterprise growth as it has in Western countries. A series of problems still need to be resolved and solutions need to be found. This study uses case study method to analyze Wangsu Technology Enterprises’ equity incentive system. The conclusion is that imperfections in China's capital markets make it difficult for the equity incentive system to play its intended role. Also, the equity incentive measures may lead to great unfairness and may dampen the enthusiasm of executives. The study gives suggestions to improve the equity incentive system’s efficiency in Chinese enterprises. The significance of this study is that it supplements the research on China's equity incentive schemes for individual enterprises and provides a theoretical basis as well as research in related fields.