Analysis on Restricted Stock Incentive in Listed Companies

Abstract

At present, more and more enterprises in China have launched restrictive stock incentive schemes. Because China's corporate governance mechanism, capital market and other factors are different from those of western countries, some new problems will inevitably arise in the process of implementing equity incentive. According to the specific market environment of China and the characteristics of companies in different industries, it is necessary to formulate equity incentive plans suitable for enterprises themselves, and set reasonable goals accordingly. This paper analyzes the principle of restricted stock incentive, discusses the role of restricted stock incentive, and puts forward effective suggestions from three aspects: improve the corporate governance structure, improve the stock market, and improve the relevant laws and regulations of equity incentive.