Equity Incentive Program Design And Implementation Effect Research

Equity incentive is a long-term incentive mechanism in order to motivate and retain core talents.Equity incentive policy by giving incentive object by certain conditions to obtain the company's stock or stock and linked to the right to return,the management of enterprises in the pursuit of maximizing their own interests at the same time diligently for the long-term development of the company,to promote the development of the company's purpose,in order to achieve the long-term goals of the enterprise,is a very good solution the principal-agent problem.After the split share structure reform in 2005,many enterprises in our country have begun to introduce equity incentive,but due to the short development time of equity incentive in our country,we have encountered a variety of problems in the implementation process.Why do some companies want to achieve the win-win effect of the enterprise and management through the equity incentive program has become a powerful tool for some executives seek personal benefits.In this regard,the paper selected as China's first batch of the implementation of equity incentive of the dairy industry giant Yili company as a case study,"the fruit causes",based on the reason analysis of the income statement to find the direct impact of the decli ne in net profit is the "dividend payment standards" requirements for the right to charge in the waiting period assessed by the cost of a huge surge,thus revealing the incentive cost incentive model of stock option.Through the financial and non-financial indicators of the two dimensions of the implementation of the incentive effect of the Yili Group conducted a comprehensive evaluation.In the financial indicators,key period calculation of Yili Group equity incentive plan in the process of implementation of the cumulative excess return rate to evaluate the short-term market performance,calculation of corporate profitability,solvency,operation ability,development ability analysis to evaluate the long-term performance before and after the implementation of the ten years of financial data incentive plan.On the non-financial indicators,calculated the actual proportion of the equity incentive of Yili Group,calculate the growth rate of executive compensation in order to conduct a comprehensive evaluation.To discuss the cause of the adverse effect,through in-depth analysis of several factors: the impact of equity incentive incentive mode,exercise condition,exercise time,exercise range and degree of motivation,finally the scheme is unreasonable,and the design schemes are proposed to formulate the reasonable equity incentive.It is hoped that the analysis and suggestion of this paper can be used as a reference for other companies,which can effectively promote the development and implementation of enterprise equity incentive plan.