Research On The Effect Of Yili Shares’ Implementation Of Equity Incentives

Under the modern enterprise system,the ownership and management rights of modern enterprises in China are separated,and this has led to a principal-agent conflict.Therefore,in order to reduce the agency cost of enterprises,fully mobilize the enthusiasm of employees,and improve the economic efficiency and market competitiveness of enterprises,equity incentive as a new type of corporate governance means has been introduced into China.By setting a series of goals for corporate executives and technical backbones and granting them certain equity to stimulate them,we fully mobilize the work enthusiasm of corporate executives and key employees,so as to improve corporate performance,retain outstanding talents for enterprises,and maintain long-term development of enterprises.However,the use of equity incentives in foreign countries is relatively mature,and the application time in China is still short,at present,China’s food enterprises still lack the relevant experience of equity incentives,and the use of equity incentives still has great room for development in China.Moreover,most of the equity incentive plans are concentrated in China’s science and technology innovation enterprises,which cannot provide enough reference for other traditional industries in China.In addition,many scholars at home and abroad also hold different views on whether equity incentives can have a positive impact on the performance of enterprises.Therefore,Yili Co.,Ltd.,a leading enterprise in China’s dairy industry,was chosen as the research object.In recent years.China has successively promulgated relevant laws and regulations on equity incentive policies,which undoubtedly provides a solid guarantee for the implementation of equity incentives.As the first batch of enterprises to respond to China’s implementation of equity incentive policies,Yili implemented three equity incentive plans in 2006,2016 and 2019,so based on the perspective of equity incentives,the incentive conditions,incentive prices,incentive objects and incentive models in the implementation motivation and program content were compared and analyzed.Using the case analysis method,literature research method,financial index analysis method,combined with the principal-agent theory,information asymmetry theory and other theoretical foundations,the data analysis was carried out from the aspects of financial indicators and non-financial indicators,and the three equity incentive plans were summarized.The equity incentive of Yili is generally successful,and the operating performance of Yili has been improved to a certain extent,effectively preventing the loss of outstanding talents.Finally,in view of the shortcomings of Yili’s current equity incentive plan,appropriate suggestions are put forward,such as formulating assessment objectives in combination with the company’s development strategy,appropriately extending the validity period and unlocking period of exercise,expanding the scope of incentives outside management,and dynamically setting exercise conditions to deal with emergencies,in order to provide appropriate reference and experience for other enterprises in China when formulating equity incentive plans.