Case Study On Equity Incentive Of Yuanli Technology

In order to achieve their long-term development goals,enterprises adopt a long-term incentive system for employees,which is called equity incentive.Equity incentive is a systematic project that serves the long-term development strategy of enterprises.It is a system planning that uses stocks as a carrier to match the "rights,responsibilities,and benefits" of incentive objects,forming a harmonious development between the company’s value and the interests of employees and enterprises,thereby achieving positive effects of equity incentive in stabilizing human capital resources,reducing agency costs,and long-term development of the company.More and more companies are paying more attention to company management and increasing their requirements for human resources in order to meet their own development needs.They are beginning to pay more attention to and utilize this mechanism,hoping to expand the company’s scale,increase company performance and brand value.But overall,the effectiveness of the company’s implementation varies,which is related to the timing and methods of the company’s equity incentives.Therefore,conducting in-depth research on the implementation process and effectiveness of equity incentive companies,drawing on successful experiences and lessons,is of great significance for enriching the relevant system of equity incentives.This thesis uses case analysis to select Yuanli Technology as the research object.A review of relevant research literature at home and abroad is conducted from three perspectives: motivation,effectiveness,and implementation factors of equity incentives.Based on the analysis of literature and relevant theories,the characteristics and implementation process of the equity incentive plan of Yuanli Technology are introduced in detail,and the motivation and implementation effects of implementing equity incentives in enterprises are analyzed.According to the event analysis method,it can be confirmed that at the level of corporate market performance,the capital market has responded positively to the implementation of Yuanli Technology’s equity incentive plan and has had a short-term improvement effect on corporate value.In terms of financial performance,Yuanli Technology’s profitability,debt repayment ability,growth ability,and operational ability have all been improved to varying degrees in the implementation of equity incentives,and its comprehensive performance has also improved.Based on the economic value added method,it has been found that equity incentives have little impact on the long-term value of enterprises.In terms of non-financial performance,Yuanli Technology has actively provided capital guarantee for new product development projects after implementing a stock incentive plan.The development and production projects have good benefits,greatly enhancing Yuanli Technology’s product development capabilities,reducing agency conflicts with each other to a certain extent,and greatly reducing agency costs.Overall,Yuanli Technology has shown a positive response to the execution effect of this equity incentive plan.Finally,these data analysis results were summarized and inspiration was proposed,hoping to provide reference significance for other companies preparing to develop equity incentive plans in terms of stock incentive time selection,incentive object setting,unlocking condition selection,incentive period setting,etc.