The Impact Of Equity Incentive On Enterprise Performance

Equity-based Incentive refers to the listed company with its company’s equity as the basis to drive the senior manager and cutting-edge technician try their best to work,which belongs to a kind of remuneration mechanism.The logic is that the managers will be motivated to act from the perspective of shareholders during the decision-making process when the manager’s personal interests and corporate interests are tied together.It’s starting point is to stabilize the senior manager and cutting-edge technician and the ultimate goal is to improve the performance of enterprises.This new type of incentive system originated in the United States,It began to be used in Europe and the United in the fifties of the twentieth century,which has a longer history in Western countries.We began to try to use the equity incentive system from the early 21st century,in order to regulate the equity incentive’s development,December 31,2005.China Securities Regulatory Commission issued the"listed company equity incentive management approach(Trial)"(there refers to"Management approach "in the next),Since then,equity incentive as a management tool has been applied Normatively in China’s listed companies in the management of management.This paper selects the YiLi Group as object of the study,which has Practiced two equity incentive schemes from 2006 to 2016.The paper introduces the main body of the case from the four aspects:company Profile,main business composition,the corporate governance structure and the ownership structure,and then from the elements of the equity incentive’s design of listed companies,focusing on the six differences of YiLi Group’s two equity incentive program:incentive objects,the number of incentives,Incentive modes,exercise price and incentive conditions,and then from the theoretical and practical aspects to analysis the analysis the principle of YiLi Group’s equity incentive,that is to say how does the equity incentives to affect the enterprise performance,And then use it’s financial data and non-financial information in the year of 2002-2016 as a tool,from the financial performance and non-financial performance aspects to analysis the equity incentive of YiLi Group’s impact on it’s enterprise performance,financial enterprise performance aspects,Select the net profit,the main business income,net assets yield and other financial indicators to observe the financial performance of enterprise which was the contents of the incentive conditions,because the equity incentive is a long-term incentive mechanism,so the paper draws the long-term trend graph of the above-mentioned indicators of Yili Group from 2006 to 2016 to observe equity incentive’s influences to the enterprise performance of Yili Group’s for ten years,and compared this part with the Mengniu Dairy.non-financial enterprise performance aspects,because the starting point of equity incentive is to stabilize the senior manager and cutting-edge technician then the ultimate goal is to improve the enterprise performance,the paper Combed four senior manager’s career situation who was the incentive objects in the 2006’s equity incentive plan to analysis equity incentive’s influence on non-financial enterprise performance.