Sunrise Oriental Equity Incentive Scheme Design

As a long-term salary incentive system,equity incentives were generated in the United States in the 1950 s and subsequently implemented by Japan and EU countries.As far as China is concerned,it started late.The first bold attempt was Vanke Group.In the reform of state-owned enterprises in the 1990 s,it took the lead in formulating an employee stock ownership plan.With the entry of the home appliance market into the incandescent competition,Gree Electric introduced the equity incentive system to the home appliance industry for the first time,and was subsequently widely used.Based on the listed companies in the home appliance industry,this paper analyzes the implementation effects through five design factors: validity period,incentive model,share of equity share,stock source and incentive object.Taking Sunrise Oriental Co.,Ltd.(hereinafter referred to as “Sunrise Oriental”)as the research object,it analyzes the company profile,main business situation and implementation motivation,and designs the equity incentive plan for industrial company personnel.First of all,this paper briefly introduces the development of the home appliance industry and the development of equity incentives in the home appliance industry.Through the statistical analysis of the development status of the incentive program implementation,the design elements of the program and the progress of the program,it is found that there are more companies in the home appliance industry in China every year.Participate in the implementation of equity incentives,and the incentive plan includes the five factors of validity period,incentive model,share of equity share,stock source and incentive object.Secondly,this paper conducts an empirical analysis from the perspective of financial evaluation,and selects the weighted return on net assets,basic earnings per share,return on total assets,asset-liability ratio,net operating cash flow/net profit,total asset turnover rate and sales gross profit margin.A representative index,through KMO and Bartlett's test,using SPSS to analyze the principal components of the seven indicators,establish a factor analysis model,score and rank the components,and conclude that the implementation of the incentive plan is beneficial to the company's operating efficiency,and then Lead to the following Sunrise Eastern Company.Thirdly,This article selects Sunrise East as the research object.,introduces the company from the company profile,holding relationship and main business situation,and analyzes the main situation by industry,and finds out the motivation of the company to implement the incentive plan.In order to get better incentive effect,the company is subdivided into several industrial companies according to industry characteristics and market channels.Then,this paper selects Sun Rain E-commerce Industry Company to design a complete plan and rationalize the plan.Argument was carried out.Finally,the paper draws conclusions based on the analysis of the elements in Chapter 3 above,the empirical analysis in Chapter 4,and the design of the equity incentive scheme in Chapter 6.In the design of the scheme,the following five aspects should be considered: the validity period,the incentive model,the share of the share of the share,the source of the stock,and the incentive object.In the empirical analysis,the traditional financial evaluation index level finds the equity incentive mechanism for the company.Management plays an active role;when the program is implemented,whether the incentive plan can be effectively implemented,the perfect supervision mechanism and the guarantee organization are indispensable,the incentive plan itself is very important,but in the implementation process,the safeguard mechanism and measures must also be used.Its effective supervision,in this regard,from the enterprise,industry,the national level to provide relevant policy recommendations: enterprises must be equipped with sound implementation agencies and regulatory system guarantee;other industry companies must implement industry incentives before the implementation of incentive programs The implementation effect of industry research incentives;the government should strengthen the promotion and publicity of the equity incentive system,and improve the securities market management and professional manager system.