Case Study Of Bright Dairy Executives' Equity Incentives

In the 1990 s,Western developed countries began to implement the equity incentive system on a large scale.The equity incentive income became an important part of executive compensation,effectively motivating many senior managers.According to statistics,in 1997 alone,the proportion of equity incentives implemented by Standard & Poor's more than 1,000 listed companies reached 97%.At that time,the successful equity incentives improved the operating efficiency and profitability of American companies and added vitality to their economic development.China's equity incentives started in the late 1990 s.Although they started late but developed rapidly,in order to keep up with the pace of the times,China introduced the “ Measures for Implementing Equity Incentives for State-Owned Listed Companies(Domestic)” in 2006,and launched the “Listing Measures” in 2016.The Measures for the Administration of Equity Incentives of the Company and the promulgation of relevant policies provide a legal basis for the implementation of the equity incentive mechanism in China.This paper takes the actual situation of Bright Dairy as the background,and analyzes whether the effects of equity incentives of Guangming Dairy executives are comprehensively analyzed whether it affects operational decision-making,investment decision-making,financing decisions,whether it improves shareholders' equity and corporate value.It is to evaluate the effect of the implementation of equity incentives in Bright Dairy and to find out the problems in Guangming Dairy's equity incentive plan.At the same time,it proposes corresponding improvement suggestions to effectively improve the efficiency of enterprises,thus helping enterprises adapt to market changes and enhance their comprehensive competitiveness..At the same time,it will also get useful inspiration from it,so that the same type of enterprises or similar enterprises can recognize the factors that need to be paid attention to when designing the equity incentive plan,and provide a reference for effectively designing the equity incentive plan and predicting the implementation effect.