Evaluation And Optimization Of Yunnan Baiyao’s Equity Incentive Plan In The Context Of Mixed Ownership Reform

After years of development and evolution,equity incentive has become a more mature corporate management tool.Before the mixed ownership reform,it was rare for state-owned enterprises to implement equity incentives due to various factors such as the nature of property rights and management mode.Since the new round of mixed ownership reform,relevant supporting policies have been released one after another and state-owned enterprises have gradually started to explore the use of equity incentives.However,for most of the state-owned enterprises that have just undergone the mixed ownership reform,the implementation of equity incentives is a brand new attempt.In this context,this thesis takes Yunnan Baiyao,a hybrid SOE that has implemented equity incentives,as an example,and innovatively uses the Balanced Scorecard in the construction of a performance evaluation system for Chinese medicine enterprises to explore how effective the equity incentives of hybrid SOEs are and where the scheme can be improved.This thesis takes Yunnan Baiyao as the research object and firstly analyses the intrinsic link between the mixed ownership reform and the equity incentive.Secondly,the motivation for the implementation of equity incentives is investigated and it is concluded that the main objectives of equity incentives at Yunnan Baiyao are to increase employee motivation,improve the company’s R&D and innovation capabilities and improve overall corporate performance.Finally,using the balanced scorecard and the fuzzy integrated evaluation method,the impact of equity incentives on Yunnan Baiyao is investigated at the detailed level and at the overall level respectively,and it is concluded that Yunnan Baiyao’s equity incentive scheme does not have significant effects other than improving the R&D and innovation capability of the company.In view of the problems identified,the thesis suggests that Yunnan Baiyao should optimize the scheme by constructing a diversified evaluation index system,setting reasonable evaluation criteria and extending the incentive period.