Research On Midea Group’s Equity Incentive Plan And Its Effects Under De-familarization

Since the reform and opening up,the rapid development of China’s economy is inseparable from the huge contribution provided by family enterprises.Therefore,China’s family enterprises are also constantly exploring new paths,and a large number of family enterprises have also begun to explore more reasonable ways of inheritance,gradually embarking on a more professional and institutionalized management model,and trying to de-family.However,how to carry out de-familiarization and how to solve a series of problems that arise in the process of de-familiarization have become the pain points of many family enterprises.Equity incentives can play a great role in this environment.Equity incentive is an important step under de-familiarization,the use of equity incentives can better retain the managers and senior management of the enterprise,and the company will gradually release the family model,and form a more efficient management model,and can better play the role of the company’s executives in the operation of the enterprise.He,the founder of Midea Group,actively promoted the de-familiarization of the company,introduced professional managers and carried out equity incentives,and constantly improved the problems brought about by equity incentives,so that the company’s performance continued to improve.In this article,taking the Midea Group as an example,by collecting the data of Midea’s equity incentive plans in recent years,studying the situation of each period of the Midea Group’s equity incentive plans under the de-familiarization,and combining the financial indicators of Midea after the equity incentive,the stock price changes,and some nonfinancial indicators,to comprehensively study the impact of the equity incentive system on the de-familied Midea.In the end,it was concluded that from the general direction,the equity incentive system of the de-familied Midea Group is effective,although it still has certain operational risks,but it is positive in various financial indicators,and has also improved its personnel mobility,talent structure,R&D and innovation capabilities;It is hoped that this article can provide certain reference opinions for the future internal reform of family enterprises,or the implementation of the equity incentive model under defamiliarization.