Case Study On ROBAM Equity Incentive Motivation And Implementation Effect

Because of China’s establishment of modern enterprise management system and the reform of equity distribution system,more and more companies have realized that equity incentive plays an important role in improving corporate governance structure,improving corporate performance and core competitiveness.However,due to the existence of objective reasons such as the market economy system is still to be improved and the equity incentive mechanism is not yet fully mature in China,the implementation effect of equity incentive scheme of Listed Companies is restricted by the imperfection of the corresponding supporting system and the inconsistency between the incentive mechanism and their actual situation.Nowadays,more and more listed companies in our country carry out equity incentive,which reflects the broad development prospect of equity incentive in our country.In this situation,the form and object of equity incentive should also be innovated to adapt to the current situation of enterprise development.As one of the representatives of China’s manufacturing industry,the competition in the industry is very fierce.It is conducive to the better development of the whole industry to study the performance effect of equity incentive enterprises in the industry.Therefore,this paper selects Hangzhou ROBAM Co.Ltd.(abbreviated as ROBAM),which is the first to implement equity incentive in the kitchen electric appliance industry,as a case study,analyzes the motivation of its implementation of equity incentive and the effectiveness before and after the implementation,summarizes the successful experience of ROBAM in the implementation of equity incentive,hoping to provide reference for other enterprises in the industry.First of all,this paper describes the background,significance and methods of the research,summarizes the existing literature on motivation,scheme design,implementation effect and evaluation methods of equity incentive,and then describes the concept and theoretical basis of equity incentive.Next,it analyzes the motivation of the implementation of equity incentive.On this basis,taking ROBAM as an example,this paper introduces the implementation process of the equity incentive system of ROBAM,and explores the previous equity incentive schemes from the perspective of implementation effect.In this paper,thecombination of financial and non-financial indicators is used to analyze the changes of financial performance and non-financial performance of the company in the years before and after the implementation of equity incentive of ROBAM.The results show that,in addition to significantly improving the financial performance of enterprises,equity incentive has a positive impact on consolidating the leading position of enterprises in the market,increasing market share,solving agency problem,ensuring the loyalty of senior managers and core management teams,improving the overall quality of employees,improving the channels of agents,and enhancing the ability of R & D and innovation.Based on the analysis results,this paper abstracts the successful experience of the owner’s equity incentive scheme.The success of equity incentive of ROBAM lies in: first,grasping the right time to implement equity incentive,taking the lead in implementing equity incentive;second,gradually expanding the scope of incentive personnel;third,setting reasonable exercise conditions,improving the incentive mechanism of enterprises;fourth,changing the single incentive mode in the past,implementing multiple equity incentive modes,and implementing multiple rounds of continuous incentive,so as to improve The implementation effect of equity incentive.