Research On The Influence Of Broad-ocean Motor Company’s Equity Incentive On Performance

With the development of The Times,the survival and development of enterprises increasingly rely on a sound corporate governance system,but because of the separation of equity and management rights,corporate governance costs remain high,and internal control problems are very prominent.Many companies are looking for a solution that can effectively solve the internal management problems and retain core talents.Equity incentive,as an effective corporate governance mechanism to solve the principal-agent problem and regulate the separation of powers,is increasingly applied in corporate governance.However,there are problems such as incomplete incentive index and unreasonable selection of incentive mode in the application of equity incentive,which make it difficult for the equity incentive to achieve the expected effect and even produce negative effect.Therefore,this paper analyzes the lessons learned from the implementation of equity incentives by studying typical companies that have implemented equity incentives,and draws inspiration from them in order to provide reference for other companies to implement equity incentives.This paper selects Broad-Ocean Motor Company as the research object,firstly introduces the related concepts and theoretical bases,and compiles the domestic and international literature related to the equity incentive program,implementation motivation and effects.Broad-Ocean Motor Company has implemented three equity incentive programs,each of which was selected based on the company’s strategic development goals and operational situation,but the motivation of its incentive programs is generally the same.Therefore,this paper will study the impact of Broad-Ocean Motor Company’s equity incentives on performance based on both financial and non-financial motivations.The impact of Broad-Ocean Motor Company’s equity incentives on financial performance is analyzed longitudinally using financial indicators and horizontally using factor analysis model.A study of the impact of equity incentives on the non-financial performance of Broad-Ocean Motor Company,analysing the market response of Broad-Ocean Motor Company before and after the implementation of three equity incentive schemes in terms of employee quality,employee turnover and capability.From the above analysis,it can be concluded that from a financial perspective,Broad-Ocean Motor equity incentives have had a positive impact on financial performance due to their implementation,the impact of the prevalence of third equity incentives on financial performance is unclear,and from a non-financial perspective,Broad-Ocean Motor equity incentives were found to have incomplete incentive targets and unreasonable exercise terms and prices.From the perspective of future development,this paper proposes corresponding countermeasures on incentive model,exercise conditions,and personal evaluation.