Case Analysis Of SN Appliance Group's Stock Equity Incentive Plan

Being the most effective incentive mechanism, stock equity incentive is an important tool and method for modern management and it has been widely used for modern enterprise which originates from America. In the 21st century, stock equity incentive has attracted more attention in China, not only in theory be more in-depth research, but also many Chinese enterprises have promulgated and implemented their respective stock equity incentive plan. They hope that through the stock equity incentive to solve some problems about the enterprise management. But the stock equity incentive's final effect based on whether the scheme design is rational and scientific greatly. It is a very important issue to Chinese enterprise especially many listed companies that how to understand the stock equity incentive and how to get a perfect effect of the stock equity incentive in our country's unique economy environment. The author hopes provides some new ideas and methods to solve these management problems by the analysis to SN Appliance Group's stock equity incentive.Taking SN Appliance Group's stock equity incentive scheme for example, the background of this case, the basic situation of SN Appliance Group and the stock equity incentive scheme rules were described firstly. Secondly, we should found out the existing disadvantages of SN Appliance Group's stock equity incentive by investigating the enterprise status and the progress of the stock equity incentive scheme at present. Then, we can judge the rationality of the stock equity incentive plan and find the root of the management problem by logical analysis, value orientation analysis and factor analysis of this stock equity incentive. And finally, we should give the improvement suggestions for this case and draw a conclusion for how to design a rational and scientific stock equity incentive plan.