On Stocking Equity Incentive Of Suning Appliance

Equity incentives as a long-term incentive mechanism arose in the United States in the early 1980 s. It has a profound theoretical basis and practical basis in the west. Theoretically, equity incentive has the Principal-agent Theory, Human Capital Management, Incentive Theory, and Property Rights Incentive Theory as its support; practically, some scholars hold the opinions that managerial ownership is related to corporate performance, and also some scholars hold the opinions that managerial ownership is not related to corporate performance, but most of scholars agree that managerial ownership plays a strong role in promoting enterprise’s performance. In recent years, the equity incentive has begun to be paid great attention and applied gradually in China. Most of domestic scholars agree that equity incentive plays a positive role in promoting enterprise’s performance. Enterprise and the government have also recognized the importance and necessity of the implementation of equity incentive gradually. Not only equity incentive can effectively improve the internal governance structure, but also can make "maximize shareholder value" as the goal of executives, encourage managerial staff to work more diligently, mobilize the enthusiasm and creativity of senior teamwork, and improve the enterprise value. At the same time, some listed companies in the early stage of development, or after development, because of the payment system is not sound, there is not perfect evaluation standard, and it is very difficult to attract or retain talented people.Since the reform of non-tradable shares in China, many listed companies have started to implement equity incentive plans. But this system in our country started relatively late after all, the development is relatively immature. If this kind of incentive plan is completely adapt to the development of enterprises in our country at the present stage, what problems will still exist in the process of implementing, how is the effectiveness of the incentive plan execution, what should enterprise do to improve the equity incentive plan in order to achieve the best effect, all of these problems should be studied.Suning appliance implement equity incentive plan is very representative in the listed companies in our country. It hopes that through equity incentive to lay the solid foundation for the company’s future development. This article starts from the Suning appliance’s equity incentive plan, through the study about the effect of the implementation of the equity incentive mechanism at home and abroad, adopts the research methods to analyze comprehensive and detailed of the equity incentive plan of Suning appliance. And make comparison between the results of its implementation.So that the listed companies design the equity incentive plan be more reasonable, more effective. They also should design the equity incentive plan in view of its company’s actual situation, and bring some new ideas for future research. At the same time, this article can provide more references for the to be listed companies, who are going to design equity incentive plans to get expected goals.