Research On The Implementation Effect Of Doushen Education Compound Equity Incentive

The arrival of the information technology revolution in the 21 st century has made human capital play an increasingly important role in the social economy.The rapid development of science and technology has stimulated a large amount of demand for talents in enterprises.In the future,competition among enterprises will become more talented.With the formulation and continuous improvement of relevant laws and regulations,equity incentives have gradually become an important means for enterprises to motivate core talents.In the development process of equity incentives,the drawbacks of the single equity incentive model have gradually emerged.Its limitations can no longer meet the diversified needs of enterprises seeking development.Therefore,the compound equity incentive model is more and more favored by enterprises.Incentives started late in our country,and the design of the elements of the compound equity incentive contract is more complicated,and the implementation effect of equity incentives remains to be verified.This article first sorts out the domestic and foreign literature of equity incentives,then introduces the related theories of equity incentives and the current development of compound equity incentives,and then analyzes Doushen Education’s plans and motivations for implementing compound equity incentives in 2013.When evaluating the implementation effect of equity incentives,firstly use the event research method to study the market response of Doushen Education after implementing equity incentives,and then expand the financial effects of equity incentives from four aspects: profitability,operating ability,solvency,and development ability.Horizontal and vertical analysis.Then,calculate the economic added value of Doushen Education to evaluate the comprehensive financial performance of the company,and finally study the non-financial effects of equity incentives in terms of talent retention,innovation ability,and business layout.The following conclusions are drawn through the research: First,the elements of Doushen Education’s equity incentives are rationally designed,but there is still room for improvement.Second,the implementation of equity incentives has improved Doushen Education’s financial performance,improved the company’s innovation capabilities and talent retention,and optimized the company’s business layout.Finally,this article summarizes the advantages of Doushen Education’s equity incentives and the shortcomings of its program design,and puts forward some suggestions on the problems of Doushen Education’s equity incentives: rationally design equity incentive elements,improve internal security mechanisms,etc.