Research On Suning's Equity Incentives

One of the typical characteristics of modern enterprises is the system of separation of powers.The shareholders of the company manage the enterprise b y hiring professional managers.At the same time,this also leads to conflicts of interests between the operators and the shareholders,which increases the agen cy costs of the enterprises.The best way to solve this problem is to align the i nterests of the operator and the shareholders by granting the equity of the oper ator.Over time,in the era of knowledge economy,the target of incentives is n o longer limited to the top managers of the company,but to the ordinary empl oyees.Through the employee stock ownership plan,employees will become the"owners" of the company and work with senior management to seek long-term and healthy development of the company.As an incentive method with an incl usive nature,the employee stock ownership plan can optimize the co-mpany's s hareholding structure,improve the level of corporate governance,and improve t he company's operating performance.However,the time for the employee stock ownership plan to enter the country is still very short.The research on the e mployee stock ownership plan is far less than that of foreign countries,and m ost of them focus on data analysis and empirical research.There are not many researches on cases.This paper mainly introduces the development process of employee stock ownership plan in China,and chooses the famous retail enterprise Suning Tesco as the case study object.Suning Tesco has launched three employee shareholdi ng plans so far,which are 2014 In 2015 and 2018,as of the completion of th is article,the stocks involved in the 2018 employee stock ownership plan have not been repurchased,so this position only refers to the first two employee sto ck ownership plans implemented by Suning Tesco,through financial indicators,EVA analysis and market reflection to analyze the impact of employee stock o wnership plan on Suning,and summarize and analyze from the design,promotio n and implementation of the plan,find out the shortcomings in the plan and ap pear in the process of implementation.The problem,analyze the cause of the pr oblem,and make policy recommendations.Through the analysis of Suning Tesco,more companies preparing to implement employee stock ownership plans can absorb Suning's experience,avoid duplication of problems,and contribute to the development of employee stock ownership plans in China.