Research On The Influence Of Country Garden's "Achievement Sharing" Incentive Mechanism On Corporate Financial Performance

With the development of economic globalization and the information age,the market competition faced by modern enterprises is becoming more and more fierce.If enterprises want to continue to occupy competitive advantages,they must rely on scientific and efficient systems to operate,and also need to be equipped with excellent human resources,and then these companies can have their core competitiveness.So how to retain these talents becomes a key issue.How do companies “retain talent”?In addition to basic material security and various benefits,the long-term effective incentive mechanism is the “rule-based strategy” to attract excellent employees to create value for the company.Common incentive mechanisms include equity incentives and compensation incentives,However,as far as the implementation of equity incentives in China is concerned,it is not very satisfactory.In this context,it is very practical to find a new form of incentive mechanism to play its due incentive effect in the enterprise.The case object selected in this paper is the real estate enterprise,Country Garden,It does not blindly follow the implementation of the equity incentive plan,but innovatively introduces the “achievement sharing” plan.In the years after the promotion of the benefit sharing and risk sharing mechanism,Country Garden's sales' growth rate was in jeopardy,and in 2015,it won the title of China's first 500 billion-level housing company,which triggered thinking.Can the program be a new form of incentive for everyone to use?This paper is divided into two parts,the theory and the case part.Before writing,the author read the relevant articles in the literature database,summed up the literature review of the incentive mechanism,performance and the relationship between the two,and also studied the relevant theoretical and financial performance evaluation methods;The case part mainly analyzes the two “shared” incentive plans implemented by Country Garden,and selects the EVA method and traditional financial indicators analysis method to evaluate the financial performance of Country Garden after implementing the plan,based on these analysis,I concluded that the “achievement sharing” incentive plan has a positive impact on the company's financial performance.It also proves the feasibility of the incentive mechanism and hopes to provide reference for other enterprises that need to specify incentive plans.