Research On The Design And Effect Of Suning’s Equity Incentive Plan From The Perspective Of Strategic Transformation

With the continuous improvement of Chinese capital market and the promulgation of relevant national laws and regulations,the improvement of the external environment makes more and more listed companies begin to implement equity incentive plans in order to alleviate the principal-agent contradiction and gain competitive advantage.But at the same time,some companies announced the failure or termination of equity incentive plans.Strategic transformation is the only way for sustainable development of enterprises.How to use equity incentive plans to promote the successful implementation of strategic transformation deserves further exploration by enterprises and academia.Suning’s equity incentive plan is accompanied by two large-scale strategic transformation processes,and its plan has gone through the process of continuous improvement from failure to success.Therefore,based on the perspective of strategic transformation,this paper selects Suning,a listed company,to study several equity incentive plans in different stages of strategic transformation,and proposes the path of equity incentive to promote strategic transformation,hoping to provide valuable reference for relevant theoretical research and practice.Through literature research,this paper collates the literature on the motivation and influencing factors of equity incentive,the risk and demand of strategic transformation,and the enterprise strategy and equity incentive.According to the resource-based view and dynamic capability theory,the demand for heterogeneous resources and capabilities is regarded as the starting point of strategic transformation.Starting from the theory of effective contract,this paper puts forward four characteristics of equity incentive under strategic transformation,and then puts forward the paths of equity incentive to promote strategic transformation based on incentive theory and human capital theory,and constructs the theoretical framework of equity incentive under strategic transformation.Then combining the case of Suning,combining the theoretical framework with the actual situation of the case,this paper studies the implementation motivation,scheme design and implementation effect of equity incentive under the strategic transformation of Suning,and puts forward optimization suggestions,and analyzes how Suning can use the equity incentive plan to promote the success of the strategic transformation.The paper put forward four specific paths of equity incentive to promote the success of strategic transformation,and deepens the research content in this field.Based on the research on the design and effect of equity incentive in different strategic transformation stages of Suning,The major conclusions are as follows:1、the equity incentive plan under the strategic transformation should have the characteristics of synergy,inclusiveness,comprehensiveness and dynamic in the design of the scheme,so as to better realize the incentive purpose and achieve the incentive effect;2、There are four paths for equity incentive plan to promote strategic transformation:to improve the ability of resource acquisition;to improve the efficiency of resource utilization;to stimulate the innovation vitality of enterprises;to reduce the risk of strategic transformation.Through the above-mentioned paths,the enterprise’s resource and capacity is continuously dynamic upgrading,so that the enterprise can obtain the power of sustainable development and promote the success of the enterprise’s strategic transformation.According to the above research,for the implementation of equity incentive plan under the strategic transformation,based on the four characteristics of incentive elements,several advice is proposed:(1)according to the strategic planning and business layout,select the key incentive objects in the strategic transformation,and combine them with the post dynamically,pay attention to conform to the motivation of the strategic transformation.(2)In combination with the objectives of the strategic transformation,it is necessary to comprehensively set the exercise conditions that are suitable for the strategic transformation,set auxiliary assessment indexes and dynamic assessment standards,such as the requirements for the development progress of the new business sector,the turnover rate of key talents for R&D,etc.,to avoid the short-term opportunistic behaviors of the management and promote the realization of the long-term interests of the strategic transformation.(3)In the face of the complex and changeable competitive environment in the process of strategic transformation,companies should grasp the policy opportunities and industry changes,make scientific prediction and full preparation for the future development,timely launch and adjust the equity incentive plan,and help the implementation of strategic transformation.To a certain extent,this graduation thesis improved the research content of equity incentive under the strategic transformation.It is beneficial to other enterprises especially the enterprises implementing equity incentive under the strategic transformation,with some values in theory and practice.