Research On Equity Incentive And Implementation Effect Of Oriental Yuhong

Equity incentive is a medium and long-term incentive mechanism for enterprises to achieve sustainable and stable development.On the one hand,it can match the development strategy of the enterprise,stabilize and motivate talents,and promote the continuous growth of enterprise performance and the realization of long-term goals;on the other hand,it can ease the commission-agent Conflicts and achieve mutual benefit and win-win for employees and shareholders.Since 2005,the relevant laws and regulations on equity incentives in my country have been successively promulgated and continuously improved,and the application of equity incentive mechanisms in the management of various enterprises has become increasingly normalized.In recent years,the market competition in my country’s building materials industry has intensified,and the demand for human capital has become more and more intense,so some companies have successively launched equity incentive plans to achieve innovative management,achieve stability and attract talents.This paper selects Oriental Yuhong as the research object,which ranks high in the building materials industry and has implemented three equity incentives.First of all,the related literature and research theory of equity incentive plan are sorted and summarized.Secondly,analyze the reasons and the rationality of key contract elements of Oriental Yuhong’s equity incentives;and on this basis,analyze the implementation effects of the incentive plan from four aspects: market response,financial performance,R&D innovation,and human resource mobility.Through the research,it is concluded that the Oriental Yuhong equity incentive plan is relatively reasonable as a whole,except that the design of individual elements needs to be optimized.In terms of incentive effect,the promulgation of the equity incentive plan can increase the rate of return of individual stocks of Oriental Yuhong in the short term,and the market effect of the second phase of equity incentives is the best and lasts for a long time.In the long run,equity incentives can significantly improve the company’s profitability and can improve operating and growth capabilities to a certain extent.In terms of risk reduction,the first phase of equity incentives is more effective.At the same time,after the implementation of equity incentives,Oriental Yuhong’s R&D investment and output have both increased;personnel flow has been relatively stable,and employee structure has been improved.Finally,summarize the relevant experience of Oriental Yuhong’s equity incentives for reference and reference by similar companies that are willing to implement equity incentives.