Research On The Implementation Effect Of Equity Incentive In Automobile Industry Listed Companies

In recent years,with the development of economic system reform,automobile industry has also entered into the transformation of technology iteration,and there is more urgent demand for the construction of talent team and the improvement of corporate governance structure.Equity incentive is beneficial to reducing principal-agent conflict and improving enterprise performance,so it is trusted by the automobile industry.However,because enterprises are in different stages of development,and the ownership structure and corporate governance structure are obviously different,they also show completely different equity incentive effects.Therefore,this paper takes Changan Automobile,a representative enterprise in the automobile industry,as an example to study the effect and problems of the implementation of equity incentive,so as to provide theoretical and practical reference for the implementation of equity incentive plans in relevant enterprises in the automobile industry.This paper first expounds the relevant concepts of equity incentive and the theoretical basis of this study,and summarizes the motivation,implementation effect and equity incentive mode of the company’s implementation of equity incentive.Secondly,taking Changan Automobile as the case study object,the basic situation of the company and the equity incentive plan were briefly displayed,and the motivation for implementing the equity incentive plan was analyzed based on the internal and external environmental factors of Changan Automobile’s development,and some contents and implementation of its equity incentive plan were summarized.Thirdly,the changes in financial indicators and non-financial indicators since the implementation of Changan Automobile’s equity incentive plan were analyzed,and compared with other enterprises in the same industry,it was found that Changan Automobile’s equity incentive had problems such as high turnover rate of incentive targets,defects in performance appraisal design,lack of obvious equity incentive effects,and ambiguous individual performance appraisal standards.Combined with the analysis and summary of the company’s annual report,announcement and other information,it is found that the causes of the problems mainly focus on the single equity incentive model,the lack of flexibility in performance evaluation,the discontinuity of incentive plans in each period,and the lack of regulatory measures for equity incentives.Finally,based on the problems found in the aforementioned analysis,countermeasures and suggestions such as selecting appropriate incentive models and incentive objects,improving equity incentive conditions,strengthening the systematic construction of incentive plan portfolios,and strengthening the management of equity incentives at the individual level are put forward,so as to provide a theoretical and practical template for other enterprises in the automotive industry to implement and innovate equity incentive models.