Study On The Effect Of The Equity Incentive Scheme In Wanke Group

Equity incentive belongs to the category of option incentive,and it is a long-term incentive mechanism for the company to encourage and retain the core talents.This long-term incentive mechanism is to conditionally endow the operators with some shareholders' rights and interests,to make managers become incentive objects and form a community of interests with the company,so as to change the incentive object from the operator to the owner.Then the owner of the company involved in the company's management and decision-making,the company to share the profits and take risks together,thereby promoting operators in order to improve the performance of the company and work harder to achieve long-term business development goals and achieve equity wealth maximization.With the rapid development of China's market economy and the increasingly standardized market environment and the gradual improvement of the legal environment,the implementation of equity incentive in China's companies has become possible,attracting more and more listed companies to try to launch equity incentive plan.However,the development of China's equity incentive is too short,the relevant system is not perfect,the legal environment also needs to be improved,so that many companies implemented equity incentive,in terms of business performance has not been improved.Some companies do not know what kind of incentive model they should adopt,the source of stock and the incentive ratio,which make the equity incentive difficult to play a very good incentive effect.Taking Vanke Group as the sample,this paper conducts a monographic study.Firstly,it expounds the research background and significance,then reviews the research status at home and abroad,and briefly introduces the related concepts and basic theories.Then,the data of Vanke Group from 2008 to 2016 were collected,and the implementation effect of equity incentive was evaluated from four aspects of financial indicators,operating capacity,long-term development capacity and market share.First of all,the vertical analysis of Vanke Group before and after the implementation of equity incentive,and then compared with the industry average value,industry typical companies.The conclusions are as follows:(1)in terms of financial indicators,the profitability,debt paying ability and development ability of Vanke Group have been significantly improved after the implementation of equity incentive.Equity incentive has a positive effect on the improvement of corporate performance.(2)interms of market response,the market share increased,the sales growth rate increased significantly,and the stock price change showed a good situation.After the implementation of equity incentive,the company's market reaction is positive.(3)the mobility of employees,reduce the turnover rate of employees,attract a large number of excellent talents,stabilize and motivate the team,so as to enhance the company's performance.Therefore,Vanke Group's equity incentive plan has achieved the desired results.There are some problems in the stock option incentive plan,such as the setting of performance evaluation index is too simple,the setting of incentive object is too concentrated,ignoring the basic operation management,and the conditions of selling stocks are not clear.In view of the problems existing in Vanke Group's equity incentive,this paper puts forward some suggestions for improvement: setting up scientific performance evaluation indicators,selecting reasonable incentive objects and incentive ratio,perfecting the internal governance structure of the company,and setting the conditions for the sale of shares.With the continuous improvement of China's laws and regulations,the capital market is becoming more mature.Based on the research results of Vanke Group,we expect to provide reference for China's listed companies to implement the equity incentive plan.