The Equity Incentive Effectiveness Analysis Of YL Company

Along with the booming economy of China,the promotion of enterprises to the social economy has become more and more significant.Therefore,the equitiy incentive plan,which is widely regarded as a improvement to the development of enterprises,has been increasingly established in China.For now,the concerning laws and regulations are come into birth step by step,along with the amount of enterprises implementing equity incentive policy is also increasing.However,due to the equity incentive system is not originated in China,so there are many issues occurred in the procedure of its implemeing in our country.This article takes the Yili as an instance,which attracted much attention through its early implement of equity incentive plan,especially in 2008,when it was exposed to had a great loss.Furthermore,the incentive object earned lots of money compared with the enterprise's loss.In view of this,this article analyzes the Yili mainly from the changing of financial metrics and non-finacial metrics before and after the implementing of the equity incentive plan compared with another enterprise in the same industry through the analysis in the plan's background,designation procedure and theanalysis on the effectiveness.