Author(s)

Lianping Mo ¹

Affiliation(s)

¹ Guangdong Mingsi Law Firm (Fang&Fang Law Firm), Guangzhou, Guangdong, 510623, China

Corresponding Author

Lianping Mo

ABSTRACT

Equity incentive plans represent a strategic approach in contemporary corporate management, designed to forge a stronger alignment between employee interests and corporate objectives through the allocation of company shares. This alignment is intended to foster enhanced corporate performance and market competitiveness. This paper undertakes a comprehensive analysis of the legal design and implementation outcomes of equity incentive plans, examining their foundational principles, key components, and the legal risks they encounter within diverse regulatory frameworks. It further assesses the impact of these plans on corporate financial metrics, market perceptions, and employee engagement levels. The research indicates that a judicious legal design can significantly mitigate risks and amplify the efficacy of incentives, while the challenges faced during execution necessitate enhancements in regulatory oversight and internal corporate governance. This study offers actionable insights for enterprises and policy formulators aiming to refine equity incentive schemes and anticipates future research trajectories.

KEYWORDS

Equity Incentives; Legal Design; Implementation Effects; Risk Management; Corporate Governance

CITE THIS PAPER

Lianping Mo, Legal Design and Implementation Effect Analysis of Equity Incentive Plans. Science of Law Journal (2024) Vol. 3: 109-114. DOI: http://dx.doi.org/DOI: 10.23977/law.2024.030516.

REFERENCES

[1] Du Shuangrui. Study on the Equity Incentive Effects of M Group [J]. Today's Wealth, 2024(14): 16-18.
[2] Yuan Yiwen. Financial Effect Analysis of the Equity Incentive Plan for Great Wall Motors [J]. Modern Business, 2024(06): 180-183. DOI: 10.14097/j.cnki.5392/2024.06.027. 
[3] Li Lianwei, Ji Xiaopeng, Lv Zhuo, et al. Research on the Impact of Equity Incentive Plans on Innovation in State-owned Enterprises [J/OL]. Scientific Research Management: 1-9 [2024-07-04]. 
[4] Jiang Songzhu. Research on the Implementation Motivation and Effects of Equity Incentives at Yili Shares [D]. Kunming University of Science and Technology, 2023. DOI: 10.27200/d.cnki.gkmlu.2023.002685.

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