Case Study On Equity Incentive Of Qingdao Haier Group

In theory,the equity incentive is conducive to business owners and operators to reach a consensus.the main role of equity incentive is to promote the company owners and operators to form a community of interests,to create value for shareholders and managers to maximize the social incentive.In the case of listed companies,shareholders ownership,management generally only participate in the management of the enterprise,so the listed companies in the implementation of equity incentive plan is the main method to solve the principal-agent relationship in enterprises.Qingdao Haier as the appliance industry leader,in 2006 launched the first phase of the equity incentive plan failedin 2009 launched equity incentive plan more perfect.Therefore,this paper makes a case study on the equity incentive plan and the implementation effect of Qingdao Haier,hoping to provide some suggestions for Qingdao Haier and the same industry.Based on the analysis of the current situation of domestic and foreign research on equity incentive,this paper uses case study method to analyze the case of Qingdao Haier equity incentive.It is found that the main motivation of the equity incentive in Qingdao is reflected in the following aspects: resolving the contradiction between principal and agent,avoiding the short-term behavior,the appreciation of human capital and improving the cohesion of the staff in the following four aspects.From the financial performance,the implementation of equity incentive,Qingdao Haier's profitability,solvency significantly improved.From the market effect,the implementation of equity incentive,the stock has repeatedly limit,the market reaction is very positive.Overall,the implementation of the Qingdao Haier equity incentive,help enterprises to attract talents,retain the realization of the interests of the company and the employee benefit;there are also difficult to obtain new employee incentive problems and the evaluation index is too simple,the institutional environment and the internal and external market environment is not perfect.Finally,through the case analysis,the author draws a conclusion that it is reasonable to set up the equity incentive plan,improve the internal system and external environment.