Research On Equity Incentive Of Yili Group

In recent years,with the rapid development of China's market economy,the management rights and ownership of Listed Companies in China are further separated.Due to the inconsistency of the company information held by both parties and their goals,the principal-agent problem arises.The shareholders of the company hope that the operators of the company can do their best to work for the company's performance,while the operators only care about their own personal interests,so Equity incentive came into being.Equity incentive is a kind of employee incentive plan.Its implementation way is to let the company's important operators obtain the company's equity,so that the operators can participate in the company's operation as shareholders.In addition,share risks and gain benefits,so that the operators and the owners can share the company's interest distribution,and also bear risks together,in this way the operators will serve the company in a responsible and long-term way.From the perspective of the development of equity incentive,its advantages are significant,so the equity incentive system in China is booming.In this paper,Yili Group,a dairy industry giant,is chosen as the research object because the three equity incentive schemes implemented by Yili Group came out at exactly the same time with each stage of the development of equity incentive system in China.This paper is divided into five parts.The first part is the introduction.This paper introduces the background of the topic,the purpose and significance of the research,and summarizes the research content,applies research methods.At the same time,it summarizes the literature at home and abroad.The second part is the introduction of related concepts and theoretical basis.This chapter mainly explains the basic concepts related to equity incentive involved in this paper,and clarifies the theoretical basis of this paper.The third part is the introduction of the equity incentive plan of Yili Group.This chapter starts from the general situation of the enterprise,introduces the design of the three equity incentive implementation plan of Yili Co,Ltd.,and analyzes its implementation effect from the financial and non-financial perspectives.The fourth part is the core of this paper.Combinedwith the third part of this paper,the paper analyzes the problems of the equity incentive plan of Yili Group.Through the analysis,it is found that the reasons for the above problems are mainly due to the self-interest behavior of the company's executives,the lack of internal and external corporate governance environment,and so on.Finally,the following suggestions can be given for the equity incentive of Yili Group.Yili Group should flexibly choose the equity incentive mode according to the specific objectives it wants to achieve,flexible choice of equity incentive mode;establish a more perfect exercise conditions,combined with the development level of dairy industry,to set a reasonable level of performance appraisal;to broaden the scope of the incentive objects,and to appropriately increase the proportion of non executive incentive objects in equity incentive;to establish the internal and external governance environment of the company,strengthen the implementation of supervision mechanism of Yili Group.