SUNING Appliance Equity Incentive Case Studies

With the increasing complexity of management and the increasing degree of equity decentralization,equity incentive plan,as the most important long-term incentive mechanism,has attracted more and more attention in order to maximize the owner's rights and interests,and to maximize the benefits of human resources portfolio.Firstly,this paper introduces the background and significance of studying equity incentive of some listed companies,determines the research methods and contents of this case.Then it elaborates the basic concept of equity incentive,summarizes and summarizes the relevant theories of equity incentive,including principal-agent theory,human capital theory and corporate governance theory,through the integration of domestic and foreign literature,obtains the literature review of equity incentive research.Then the case is introduced.The object of this case study is Suning Electrical Appliances.It is analyzed from the company's general situation,the purpose of incentive implementation and the specific content of the implementation plan.The specific content of the incentive plan is the key part of this article.From the analysis point of view,it is elaborated from seven aspects,namely,incentive mode,stock source and operation.Power standard,incentive target,quantity granted,exercise price and conditions for stock sale.Then,based on the analysis and comparison of the results of equity incentive implemented by Suning Electric Appliances and Gome Electrical Appliances in the same period,the author compares the audience and the concentration of equity,the conditions of exercise of power and the timing and procedures of introduction,and draws the reflection and Enlightenment of the equity incentive scheme of Suning Electric Appliances.Then it compares the competitiveness of five enterprises that have not implemented equity incentive with the same industry after the implementation,and uses the efficiency coefficient method to analyze and rank six enterprises including Suning Electrical Appliances in an all-round way,so as to further analyze the effectiveness of the implementation of equity incentive program.Finally,the implementation results of the case are analyzed.Analysis of the company's overall financial performance analysis,including performance,profitability,solvency and EVA value analysis.Finally,the paper draws some suggestions on how to formulate the exercising standard,how to set the exercising conditions and how to improve the performance appraisal standard.The research methods and ideas of this case can provide reference for other listed companies in China in the exploration of equity incentive schemes.The research results of this paper are innovative.