Research On Implementation Effect Of Midea Group's Equity Incentive

As a kind of salary incentive system,equity incentive is to use equity as a way of paying compensation to arouse the work enthusiasm,subjective initiative and creativity of the encouraged personnel,and on the basis of the company's operating performance,It is a long-term incentive mechanism to realize the win-win between the encouraged personnel and the company.In 1952,Pfizer launched the world's first stock options plan to avoid taxes,and achieved good results.In the mid 1980 s,the strategy of stock-ownership incentive the management of listed companies began to prevail in the United States.Although the stock right incentive of Chinese starts late,but the development is rapid,from 2005 share division reform,Chinese has issued a series of related laws and regulations,the stock right incentive application in the listed company is becoming more and more common.However,from the results of enterprise practice,not all equity incentive schemes are effective.Based on this,The article takes Midea as the object of study to analyze the effect of implementing equity incentive plan in enterprises.This paper takes Midea,a star enterprise in the household appliance industry,as the research object,analyzes the effect of implementing equity incentive,and puts forward some suggestions to improve the equity incentive plan combined with the current development situation of the company.Firstly,the paper Starting with the background and significance of the research,and a careful study of the relevant research literature on equity incentive at home and abroad.Secondly,using the methods of financial analysis and non-financial analysis to carry on the quantitative and qualitative analysis to the effect of Midea's equity incentive.The results show that equity incentive has a certain effect on Midea's long-term business performance.Midea can attract and retain talents and promote the promotion of enterprise market competitiveness through equity incentive.However,there are also some shortcomings in the scheme,such as the low and single performance index setting,the high turnover rate of the stock incentive objects in the waiting period,and so on.In view of these defects,this paper proposes to perfect the performance evaluation index of the equity incentive plan.It is also of significance for Midea to consider and improve the problems in implementation of the key elements.