Hisense Equity Incentive Plan Implementation Effect And Research

Under the modern enterprise system,the separation of management right and ownership creates the agency problem.The capitalist developed countries prevent the occurrence of this phenomenon through the equity incentive,hoping to eliminate the contradiction between the shareholders and the managers;so that the company can enter the normal track and promote Business performance is rising.With the vigorous development of China's economy,the follow-up of the system more and more enterprises,equity incentive also entered into a “golden age”,the study of equity incentive for China's listed companies to implement equity incentive program has a certain practical significance.This paper mainly studies the equity incentive does play a role in corporate performance,by choosing Hisense electric equipment as the research object of this article,based on the theory of the equity incentive,the results of its equity incentive exercise three times after analysis found that hisense electric agent behavior.Through the analysis of the profitability,solvency,growth ability and operation ability of Hisense before and after the equity incentive in 2009-2017,it was found that Hisense's performance was good and its market conditions were better during the equity incentive period are likely to be caused by their executives,the company's performance in the incentive program is not implemented after the corresponding upgrade;The author also found Hisense executives set a short period of validity,during the exercise of low to buy and sell stocks to obtain personal income tax relief,and further maximize the benefits;The article also analyzes the performance of Hisense in the securities market.Under the other macro interference environment,it proves that the equity incentive plan does not play its due role.By studying the case of Hisense,the authors believe that the ownership incentive scheme of Hisense has these problems: the internal governance structure is not perfect,performance appraisal measures are too simple,and the rights to exercise and reduce the control of senior executives,incentive object settings are too centralized.So should regulate our country enterprise implementation of equity incentive plan,perfect the internal governance of listed companies,to carry out the internal supervision and restraint mechanism,the reasonable design ductility of equity incentive plan,appropriate to foster professional managers reserve space,pass ductility of equity incentive plan design,and the managers' performance on a regular basis,in order to prevent the equity incentive to executives or shareholder under the economic system in the new period between seek personal gain new tools,which can help Chinese enterprises and the market good economic development.The author chooses the Hisense which are both listed companies and the nature of state-owned enterprises.At present,China is in the period of reform of economic system.As an important part of China's reform,state-owned enterprises are required to pay attention to the problem of internal governance For the future can effectively solve the low performance of Chinese state-owned enterprises,the lack of competitiveness of the problem.