Research On The Multiple Equity Incentive Schemes And Implementation Effects Of Listed Companies

With the separation of ownership and management power in modern enterprises,due to the asymmetry of information,the principal-agent conflict arises.As a long-term incentive system,equity incentives are given to some employees conditionally,thereby mobilizing their work enthusiasm and subjective creativity,realizing a lasting win-win situation between the incentive object and the enterprise,which can alleviate the contradiction with agency to a certain extent.The equity incentive system was implemented relatively late in China,but has developed rapidly.In 2006,with the introduction of relevant regulations,it was gradually standardized.However,in practice,many companies’ equity incentive plans have not achieved the expected results.As a leading company in the home appliance industry,Midea Group has a variety of equity incentive plans and has outstanding results.Therefore,this article takes Midea Group as a research object to analyze the scheme and implementation of corporate equity incentive plans.This article elaborates the research background and significance at the beginning,summarizes the related literature on domestic and overseas equity incentives,and summarizes the relevant theories and concepts.Then it analyzes the background and motivation of Midea Group to implement equity-based incentives,including easing the principal-agent contradiction and attracting talent and encourage innovation and improve the salary incentive mechanism,etc.;then conduct a detailed analysis and introduction of Midea Group’s multi-phase equity incentive plans from 2014 to 2018,including the incentive object,the amount of incentives,and the exercise conditions;and analyzing the implementation effect of Midea Group equity incentives.The effect is to start from two aspects,non-financial and financial,and evaluate it in the same industry.Finally,analyze and evaluate the advantages and disadvantages of Midea Group’s equity incentive plan,and draw inspiration and suggestions.The research found that Midea Group’s equity incentive plan has the characteristics of overlapping multiple incentive models,wide coverage of incentive objects,and matching of incentive priorities with the company’s strategy.It has a positive effect on the improvement of the company’s overall operating performance,and the contradiction between principal and agent has been eased.,Attract and retain a large number of outstanding management and research and development personnel,and promote its market competitiveness.However,there are also some shortcomings in the formulation and implementation,such as the incomplete setting of assessment indicators and the serious problems of two-part-time management.In response to these issues,this article also puts forward some suggestions,including periodically adjusting the incentive plan according to the actual situation,formulating scientific and reasonable exercise conditions,establishing an independent and perfect equity incentive supervision and management mechanism,etc.,which can provide some references to other enterprises who plans to implement equity incentives.