Research On The Effect Of Multi-level Equity Incentive Implementation In FX Group

The development of productivity and the further refinement of social division of labor have led to the gradual separation of ownership and management rights.There has been a principal-agent relationship between the owners and operators of enterprises.Because of the inconsistent interests of the two,the contradictions in the principal-agent relationship Increasingly prominent,in order to solve the contradiction between the company's shareholders and the management,an equity incentive mechanism has emerged.On the one hand,the implementation of equity incentives eases the contradiction between principals and managers,and links the interests of the two to establish a common interest relationship between employees and the company to share risks.On the other hand,it also helps companies retain talents and introduce talents,encourage employees to create more value for the company,and achieve long-term stable development goals.Therefore,more and more enterprises choose the form of equity incentives as the management means to motivate employees,and equity incentives have gradually become an important part of corporate governance.China's equity incentives started late,are not mature in theoretical research and practical application,and are in a stage of development and perfection.At present,although many companies have implemented different forms of equity incentives,from the practical results,not all companies' equity incentives have achieved the expected results.The positive effect of how to better play the equity incentives is still that enterprises must think and solved problem.It is also in this context that this paper studies the equity incentive plan of FX Group,and expects to have certain practical significance for the development and improvement of China's equity incentives.Based on the principal-agent theory,two-factor theory and human capital theory,this paper draws on relevant literature and literature,and uses the case study method to analyze the effect of the implementation of equity incentives by FX Group as a case study company.In the case study of the company's multi-level equity incentive plan,the FX Group first introduced the equity incentive plan at the group level,subsidiary level and subsidiary company's holding company,and explained the characteristics of its multi-level equity incentive.Secondly,it analyzes the effects of the implementation of multi-level equity incentive plan,and analyzes the effects of financial performance,non-financial performance and market response through financial indicators and comparative analysis.Then based on the above research and analysis to evaluate and summarize the successful experience and shortcomings of FX Group's multi-level equity incentive plan,and finally put forwardcorresponding improvement suggestions for its existing problems,and provide for other enterprise groups in China when designing the equity incentive plan.Value reference and lessons learned.