The Analysis Of Suning Commerce’s Equity Incentive Effectiveness Case

With the increasing decentralization of the company’s equity and management tools increasingly complex, large companies around the world in order to give the owner the most profitable, to achieve the optimal combination of resources and manpower, are sought after by the separation of ownership and management model. However, due to two different goals, there has been damage to the owner’s equity to the self-serving management and other adverse side effects. In order to effectively solve the principal-agent problem, reasonable incentive company’s core staff, the United States in the 1980 s opened the stock options and other equity incentive model, and began widespread.In China, with the pace of reform and opening up forward, many companies equity incentive to try it. From the 1990 s, shares of China Vanke equity incentive plan to spring up, finally ushered in the "Equity Incentive Measures for the Administration of Listed Companies(Trial)" in 2006, marking the company’s equity incentive management officially opened the prelude. However, most foreign equity incentive company cited a "acclimatized" phenomenon, the development of China’s listed companies incentive system is still lagging behind.This paper mainly Suning Appliance as the research object, preclude the case study method, the company repeatedly announced equity incentive plan are analyzed in detail. It focuses on the Suning Appliance equity incentive plan before and after the change in company performance, explore the relationship between the performance of the equity incentive equity incentive and an increase in incentive program design effectiveness. Research methods, this paper preclude the use of index analysis method to study the value of financial and longitudinal analysis, but also preclude the use of the efficacy coefficient method to compare with the reference object Suning Appliance performance and overall rankings. Come Suning Appliance equity incentive for the company to enhance the value did not play an active role in the conclusion. On this basis, the incentive objects, features and assessment indicators angle exercise price, the exercise of Suning Appliance equity incentive plan were analyzed, and combined with the case put forward relevant proposals.The main contribution of this paper is dual-angle from vertical and horizontal multi-dialectical approach to Suning Appliance equity incentive effect on the company’s performance, and on the basis of the design elements of Suning Appliance equity incentive program carried out a detailed analysis. As an example of inadequate and Precautions equity incentive plan design, feature set found to play a stock incentive effectiveness. Provide reference for other companies equity incentive to its full effectiveness and use of positive incentive stock options.