Research On Scheme Design And Implementation Effect Of Midea Group Stock Ownership Incentive From The Perspective Of Strategic Transformation

With the further development of China’s capital market,the legal system and theoretical research on corporate equity incentive are becoming more and more perfect,so enterprises have begun to launch equity incentive plans.The purpose is to alleviate the principal-agent problem,enhance the interests of enterprises and employees binding,so as to obtain a leading position in the fierce market competition.However,there are also some enterprises that do not consider consistent with the company’s development strategy,but follow the trend of implementing equity incentive plans,which ultimately lead to the failure or termination of the plan.Strategy is the premise and basis of equity incentive implementation,equity incentive can promote the realization of corporate strategic goals,the two are closely dependent.If do not consider the situation of the company strategy to follow the trend of equity incentive,so much equity incentive also do not have much effect.As a representative listed company in strategic transformation and equity incentive,Midea Group’s equity incentive has always been consistent with the strategic direction of the company in each period.With the two large-scale strategic transformation of Midea Group,it has developed a continuous multi-phase and multi-level equity incentive plan,and achieved good incentive effect.The equity incentive plan formulated by Midea Group has strong integrity,rich variety and clear hierarchy,and can be adapted to the specific situation of the company’s strategic transformation in the selection of incentive mode and formulation of incentive plan,which has a good model among listed companies in China.Therefore,this article choose to Midea Group of equity incentive as a successful case,combined with the background of the strategic transformation process,analysis its equity incentive plan object,incentive mode,performance indicators of these three elements in the design of the successful experience,it is hoped to provide case inspiration and suggestions for the design and implementation of equity incentive schemes based on strategic transformation for other enterprises and enrich relevant theoretical and practical research.Firstly,this paper adopts the literature research method,systematically combs the existing literature research on equity incentive and strategic transformation at home and abroad,and briefly introduces some related concepts and theoretical basis.Secondly,it introduces the situation of equity incentive in Chinese listed companies at the present stage and why Midea Group is selected as a case study,and makes a brief introduction to Midea Group by case analysis method;This paper studies the motivation of Midea Group’s strategic transformation,divides its development process into three stages,and introduces the basic situation of equity incentive;Using the event study method to analyze its short-term market stock price performance,in-depth analysis of Midea Group stratified equity incentive system implementation effect.Thirdly,from the perspective of strategic transformation,this paper analyzes the differences between Midea Group in the design of different equity incentive plans from the three elements of incentive mode,incentive object and performance index,so as to have a more detailed understanding and understanding of the design of corresponding equity incentive plans and specific elements implemented by enterprises under various strategic objectives.Finally,using the balanced scorecard,from financial,customer,internal process,learning and growth these four dimensions on comprehensive analysis of the financial index and non-financial index together,it is concluded that Midea Group after the launch of equity incentive plan,has played a positive incentive effect,and improved its performance ability,capital appreciation ability,growth ability,etc.By analyzing the design and implementation effect of multi-phase and multi-level equity incentive plan of Midea Group from the perspective of strategic transformation,the following two conclusions are drawn: Firstly,the equity incentive scheme of Midea Group can be designed according to the different strategic situations of the company in different periods to set corresponding incentive modes.Secondly,the implementation effect of equity incentive of Midea Group is significant through the balanced scorecard.In addition,this paper draws the following enlightenment from the company’s choice of incentive mode,incentive object and performance index setting: Firstly,rational use of incentive models suitable for corporate strategic goals.Secondly,in the strategic transformation,we should choose targeted incentive objects.Thirdly,the performance assessment indicators should be optimized in strategic transformation.It is hoped that the research of this paper can provide some reference for the enterprises that are implementing or will implement equity incentive plan in the strategic transition period.