Research On Multi Tier Equity Incentive Of M Group

At present,with the continuous expansion of China’s enterprise scale,the rapid development of the capital market,and the increasingly fierce competition for talents,the traditional salary system allows companies to retain core employees,but it is no longer applicable.On this basis,the equity incentive system was introduced,which effectively resolved the above contradictions,made shareholders and managers of the company more united,and improved the enthusiasm of managers.Compared with other countries,China’s equity incentive mechanism started late,and many enterprises are still in the process of exploration and practice.However,whether equity incentive can retain key talents,reduce staff placement costs and improve enterprise performance,there is no clear answer at present,and it still needs practice and time to test.The home appliance industry is facing fierce competition while developing rapidly.In recent years,many companies in the household appliances industry(such as Hisense,Gome,Gree,etc.)have tried to contribute to the development of enterprises through equity incentives.So far,M Group has implemented 8 equity incentive plans(for key employees),7 business partners(main members include president and deputy general manager),and 5 restricted stocks(for executives).The eight stage stock option plan is carried out in the form of full price and is funded by employees themselves;The shares in the partner’s equity incentive plan are invested by the company or purchased in the secondary market;In the restricted stock incentive plan,employees can obtain shares directly through 50% discount.The author believes that,compared with other enterprises,M Group’s unique hierarchical equity incentive model is more diversified and hierarchical,which can play its role to the greatest extent in meeting the needs of employees at different levels,and can also adopt corresponding equity incentive plans for different types of incentive objects,so the effect is also good.Based on this background,this paper chooses M Group’s equity incentive as a case study,which is more feasible and representative.Scholars have not formed a consistent view on the effectiveness of equity incentive and its evaluation.Based on the existing literature review,this paper uses relevant theories to study the background,motivation,content and implementation of equity incentive plan of M Group,and analyzes the implementation motivation of its equity incentive plan,and evaluates its financial and non-financial implementation effects.The results show that M Group’s equity incentive can improve the business performance of enterprises.Through equity incentive,M Group’s operating performance has been significantly improved,its main profitability,operating ability and development ability have been improved,and its solvency is guaranteed.At the same time,the management effect of human resources and the creative level of employees have also been improved.Through in-depth research on the implementation of equity incentive of M Group since 2014,the paper analyzes the three levels of incentive types that M Group has exited,and through comparative analysis of the three incentive types,with the hope that the conclusions can enlighten companies in the same industry in formulating and implementing equity incentive plans.