Evaluation On The Implementation Effect Of Equity Incentive In GF Company

The theory and research of equity incentive are introduced late in China,mainly for the empirical research on the relationship between equity incentive and financial performance,and the number of case studies is relatively small.GF Company is in the field of deep processing of lithium materials with fierce competition.It has announced four equity incentive plans in2012,2017,2021 and 2022.Among them,the 2017 incentive plan was terminated midway due to the inability to achieve performance goals,and other companies in the secondary industry started later in the implementation of the equity incentive plan without reference.Considering that GF company ’s 2022 incentive plan has only announced the plan and is still in the waiting period,this paper mainly evaluates the implementation effect of the first three equity incentive plans,hoping to feedback the problems existing in the design and implementation of the plan and provide thinking for the improvement of the subsequent equity incentive plan.This thesis first summarizes the relevant literature on the evaluation angle and evaluation method of the implementation effect of equity incentive,and then summarizes the purpose,content and implementation status of GF company ’s equity incentive plan.Specifically,it includes: using the event study method to evaluate the short-term market reaction after the implementation of equity incentive;combined with the economic value added to analyze the comprehensive financial performance,and the results of financial index analysis to verify each other,more scientific evaluation of the company ’s financial performance changes after equity incentive;from the four aspects of R & D innovation ability,employee stability,development process of strategic objectives and changes in governance structure,the non-financial changes of GF company after the implementation of equity incentive are evaluated.Finally,the implementation effect is analyzed in combination with the expected goal realization.After evaluation,it is found that some of the goals of GF ’s equity incentive plan have been achieved,but the overall implementation effect is obviously limited.There are some problems,such as poor realization of performance goals,insufficient stamina of equity incentive,insufficient attraction to high-level employees and lack of effective supervision of the implementation process.Therefore,according to the main factors affecting the implementation effect of equity incentive,this paper puts forward some suggestions,such as setting up performance indicators in combination with benchmarking enterprises,progressively unlocking to enhance motivation,differentiated assessment to enhance attraction,and attaching importance to the supervision and feedback of incentive process.It is hoped that GF company can refer to the changes in the industry environment when implementing the equity incentive plan in the future,compare with the benchmark companies to find deficiencies,and timely disclose the information related to equity incentive,so as to better play the role of equity incentive and help the company achieve long-term healthy development.