Chow Tai Seng Equity Incentive Implementation Effect Evaluation And Optimization Research

The different pursuit of interests of shareholders and management of listed companies has led to the problem of entrusted agency,and equity incentive is a longterm incentive mechanism that can effectively solve the problem of entrusted agency.By granting a certain amount of equity to the company’s managers,the interests of the company’s managers and owners converge,improve the enthusiasm of the incentive targets,reduce the cost of entrusting agents,and improve the performance of the enterprise.Now,human capital plays an increasingly important role in enterprise competition,how to motivate the management team,core technical backbone,directly affect the company’s competitiveness,so equity incentive has also become a way for modern companies to retain core talents and attract outstanding talents.Since the Stock incentive management method of Listed Companies issued in 2016,China’s equity incentives have entered a stage of rapid development,and the number of listed companies applying share incentives has been increasing.With the upgrading of China’s residents’ consumption structure,the frequency of jewelry consumption has increased,the scale of the jewelry market has steadily expanded,and the industry competition has intensified.Based on the theory of equity incentives,this paper analyzes the motivation of Chow Tai Sang to implement equity incentives,and then focuses on the effect of its equity incentive plan.Firstly,the event research method was used to analyze the short-term market reaction of Chow Tai Sang’s release of the restricted stock incentive plan.Secondly,traditional financial indicators were selected to compare and analyze the changes after the implementation of equity incentives by Zhou Taisheng respectively,and compare them horizontally with the industry level and comparable companies.Then use EVA to analyze the company’s value changes;In terms of non-financial indicators,the employee situation,market layout,R&D and innovation were analyzed,and the conclusions are as follows: the implementation of equity incentives does not have a positive impact on short-term market response,plays a certain positive role in profitability,solvency and development ability,and has no obvious impact on operating ability,and equity incentives also play a promoting role in non-financial indicators.At the same time,after the study of the content of the Zhou Taisheng equity incentive plan,it is found that the Zhou Taisheng equity incentive plan is generally reasonable,but there are still some problems: the performance evaluation index is single,the unlocking conditions are less difficult,and the validity period of the incentive plan is short,and finally the corresponding optimization suggestions are put forward: set diversified assessment indicators,set scientific unlocking conditions,extend the validity period of equity incentives,hoping to provide demonstrations for the future application of equity incentives in the jewelry industry.