Research On Supor Equity Incentive Scheme And Its Effect

In recent years,because the company grows larger continuously and has a more complete organizational structure,many companies have handed over the company to professional managers in order to solve the shortage of human resources,which has also caused the conflict of interest between shareholders and managers.The main method for Chinese companies to solve the conflict is the implementation of equity incentive plan.However,there are many differences due to the nature of the industry and the development of the company,the motivation of equity incentive is also different.Due to the imperfect capital market in China and many deficiencies in the contract elements of incentive plan,so the effect of equity incentive in listed companies is also different.Nowadays,increasingly enterprises enter the appliance industry,hoping to obtain high profits,but with the continuous expansion of the brand sales network,appliance companies do their best to attract consumers in order to win in the market competition.As the first listed company in Chinese cookware industry,Supor is also one of the earliest conscious companies implementing equity incentive plans.It has launched four equity incentive plans in total.This article uses the method of case analysis to delve intothe equity incentive plan of Supor,summarize relevant points,research the implementation effect of Supor’s four equity incentives,discover the deficiencies of the four equity incentive plans,and provide targeted opinions to improve the equity incentive plan for the company.The article begins with a description of the research background,significance and research status of scholars on incentive stock options,and the concept and theory related to equity incentive are briefly introduced.Next,in the main part of this article,we first introduce the basic situation and shareholding structure of Supor.According to Supor’s shareholding changes and the background of the four equity incentives,Supor’s motivation for launching equity incentives under different property rights will be explored.In addition,we will also give a detailed introduction to the four equity incentive plans.In the context of family holdings,due to the mismatch between the company’s internal governance and performance improvement,the welfare motives of equity incentives are obvious especially;in the context of foreign holdings,the main purpose of equity incentives is to promote the development of company performance and retain outstanding talents.Then,it analyzes the effects of Supor’s equity incentive plans under different property rights.According to the pre-established evaluation framework for the effects of equity incentives,this framework is based on the three perspectives of market response,changes in exercise indicators during the evaluation period,and innovation capabilities.After a series of analyses,the following conclusions can be drawn:Supor’s four equity incentive plans can significantly improve the company’s profitability,but the effects on asset turnover efficiency and debt solvency are different.Then,this article is based on the analysis of the effect of equity incentives and the specific content of each contract element of the equity incentive plan,and found that the four equity incentive plans have the following defects: unreasonable performance indicators,inflexible target values and low exercise price.Finally,based on the problems found,three measures are proposed to ensure the smooth implementation of the equity incentive plan: optimizing the performance evaluation indicators,setting up reasonable performance target values and setting up scientific exercise price.