Research On Equity Incentive Effect Of WM Company

Modern enterprises are developing rapidly,and the importance of human capital in today's era is also constantly being highlighted.Therefore,in addition to compensation and benefits,many companies have begun to choose internal incentive policies to attract and retain talent.Among them,equity incentives have been favored by many listed companies.The study found that equity incentives can bring many benefits to the company,including performance improvement and talent retention.Although the way of equity incentives can bring great impact to the company,many listed companies have some problems in the implementation process.For example,some companies have not investigated the internal environment of equity incentives implemented by their companies before the implementation.The company's own situation is not comprehensive.In this case,the policies formulated may not be applicable to the development of the company,which ultimately leads to the implementation of equity incentives that do not achieve the desired results,or directly end in failure.The company's operating status is dynamic,and research will also be "differentiated" for companies of different industries and sizes.The research object selected in this article is WM,which has been implementing equity incentives since 2015.It is one of the first domestic listed game companies to implement equity incentives and is a leader among game companies.Choosing WM Company as the research object of the implementation effect of the equity incentive system in the Internet gaming industry will provide reference value for companies in the same industry that have not yet implemented equity incentives or the implementation effects of equity incentives are not ideal.Through the analysis and research on the related theories and cases of implementing equity incentives,this paper speculates that the motivations for WM companies to implement equity incentives are as follows:(1)Attract talents and prevent brain drain.(2)Reduce the agency cost of enterprises.(3)The long-term incentive effect promotes the innovation and development of enterprises.This article uses the literature research method and comparative research method to analyze the implementation effect of WM's equity incentive plan in 2015-2018.First of all,this article gives a brief introduction to the basic situation of WM and discusses the motivation for its implementation of equity incentives.Secondly,this article uses several financial indicators to compare the financial performance of WM companies horizontallyand vertically,and at the same time uses three indicators of the overall quality of employees,R&D and innovation capabilities,and the loss of equity incentive objects to analyze from a non-financial performance perspective.Finally,this article evaluates the implementation plan of WM's equity incentive.Although the final implementation effect seems to meet the company's expected requirements from a financial perspective,it can be understood from the analysis of several non-financial indicators that its implementation effect is not ideal.By suggesting improvements to WM's equity incentive plan,it can also provide reference value to companies in the same industry that have not yet implemented equity incentive plans or implemented equity incentive plans with poor results.