Case Study On The Staff Incentives Implementation Effect Of Dahua Company

Employee motivation is designed to encourage employees.Since the 1990 s,the equity incentive mechanism,now known as the "golden handcuffs",has been introduced into China from Europe and the United States,which has been gradually adopted in many large enterprises,especially in high and new technology enterprises.Relative laws and regulations in China has been under construction to guarantee the development of the employee motivation.Corporate governance,is of great concern to the modern company development.The usage of employee motivation as an efficient means of encouragement,is worth in-depth studies for better corporate governance.This paper is developed on the basis that,the employee motivation can affect the company's performance,then thoroughly discusses the impact of employees' incentive,and is organized around the following questions:(1)main influence of the equity incentive on a company;(2)influence of the employee stock ownership plan on the company;(3)according to the liquidity of the company's personnel,can be continuously implement staff incentive schemes;(4)the effect of the parallel adoption of the equity incentive and employee stock ownership plan.Taking Dahua Company as an example,considering its implementation of equity incentive and employee stock ownership plan in the decade from 2006 to 2016,as well as analyzing data using the financial and non-financial indicators,the following conclusions have thus been drawn:(1)the implementation of equity incentive and employee stock ownership plan,will improve the company's debt paying ability,operation ability,profit-making ability and development ability,and the former will have greater impact on the company's debt paying ability and profit-making ability than the later incentive;(2)equity incentive and employee stock ownership plan will affect management decisions and change the composition of company personnel;(3)the combination of equity incentive and employee stock ownership plan will lead to a more significant and positive change in the company's performance.Based on the said research,the article comes to a conclusion that enterprises shall pay attention to the cultivation of talents,to implement different staff incentive system in different stage of development,to continuously expand the scope of employee benefits,and to combine the equity incentive and employee stock ownership plan together,thus to give some hints for the profit maximization and continuing operations of the enterprises.