Research On Implementation Effect Of MDJT Equity Incentive

With the continuous development of enterprise management,in the contemporary enterprise management,the mode of separation of enterprise ownership and operation right has been formed.This mode not only meets the needs of modern management,but also gives birth to the principal-agent problem.The fundamental reason of principal-agent problem is the information asymmetry between the professional managers and the shareholders.The inconsistency of the interests of both sides further leads to the phenomenon that the managers seek their own interests.One of the effective ways to alleviate the principal-agent problem is to implement equity incentive.This paper takes MDJT's six phase stock option plan,three phase restricted stock plan and five phase core management team stock ownership plan as the research object,and a complete set of specific examples of equity incentive plan.Through the vertical comparative analysis of four dimensions of financial indicators and EVA indicators,including solvency,profitability,operation ability and development ability,and the horizontal comparative analysis with other two enterprises in the same industry,Qingdao Haier and Shenzhen Kangjia,this paper analyzes the implementation effect of MDJT's overall equity incentive plan,and evaluates the plan based on its implementation effect.As a whole,MDJT's equity incentive plan is successful.Its incentive plan has played a positive role in promoting the expansion of the company's market share,the improvement of market competitiveness and the overall performance.Through the analysis,this paper lists the advantages of three MDJT incentive schemes,including: clear objectives of equity incentive,perfect levels of various equity incentive methods,and expanding incentive scale;at the same time,this paper also lists the problems still existing in the two MDJT incentive schemes,including: the repeated superposition of each exercise period leads to the soaring incentive cost,which is high for the company In view of these two problems,this paper puts forward the corresponding solutions: the implementation of incentive plan every other year,and the inclusion of multiple indicators in the exercise conditions.By analyzing the advantages and disadvantages of MDJT's overall equity incentive plan and sorting out the corresponding solutions,this case can play areference and enlightenment role in its industry,even in the whole Chinese capital market.Other enterprises can improve their strengths and circumvent weaknesses according to the case of this article,and extract their essence from the dross,combined with the actual situation of their own companies,and improve their own incentive mode.At the same time,the relevant functional departments of the government can also use the specific problems raised in this paper to make specific guidance for various industries in the capital market,such as the introduction of specific equity incentive guidelines for listed companies,specific industry equity incentive guidelines,and the formation of standardized laws and regulations to restrict the possible management's self-interest,which leads to the majority of investors' interests Damage.