Research On Implementation Effect Of Equity Incentive In GAC Group

Equity incentive is an effective long-term incentive,which can slow down the deepening of the principal-agent contradiction,reduce the agency cost,and enable managers and operators to achieve the same interests,thus creating greater corporate value.With the vigorous implementation of the market economy,market competition has intensified,the scale of the company has become larger and larger,and the competition among talents has become fiercer.The brain drain is serious,and the incentives are particularly important.Compared with some western countries,the implementation time of equity incentives in China is slightly lagging behind,but with the introduction of share-trading reform and related management measures,this system has entered a period of vigorous development in China.However,at present,China’s relevant legal system is not perfect,the policy environment is relatively loose,and the nature of the industry in which different enterprises are located and their shareholding structure and governance structure are not the same,and not all can achieve better incentive effects.Therefore,this paper takes Guangzhou Automobile Group as an example to study the effect of its equity incentive implementation,and provides important theoretical and practical support for the extensive trial operation of this system.This paper first elaborates on the methods of applying literature research related to equity incentives,and summarizes them.Then select Guangzhou Automobile Group as the case study object,use case study method,analyze the basic situation of GAC Group and implement specific measures,and combine the internal and external environmental analysis of the group to summarize the action of Guangzhou Automobile Group to implement equity incentives,optimize the governance structure,attract and stay.Live core talents and enhance brand competitiveness.The financial performance analysis method and comparative analysis method of GAC Group’s equity incentives were used to analyze the financial performance before and after the implementation of equity incentives,and to conduct the same period with the same industry leader SAIC and the industry average.Lateral comparative analysis found that the financial performance of Guangzhou Automobile Group after the implementation of equity incentives has been improved to varying degrees.In addition,it also studies the impact of non-financial indicators on the human capital structure,research innovation status and market performance after implementation.By analyzing the implementation effect,it is found that the implementation of equity incentives has a positive impact on their financial performance.The improvement in profitability is the most obvious.Although the solvency,total return on assets and development capacity still need to be improved,it is also rising steadily and gradually surpassing the industry average.Moreover,its promotion of non-financial indicators is more obvious.On the whole,equity incentives have helped GAC Group to increase its corporate value and brand influence to a certain extent,and continuously improve and optimize the human capital structure.At the same time,however,the performance evaluation indicators are not comprehensive,and the incentive model is too monotonous,and there are also deficiencies.Finally,through the research of this paper,while using Guangzhou Automobile Group as a successful reference,it also provides inspiration for relevant departments and emulating enterprises: Before implementing the equity incentive system,it is necessary to fully understand the nature of the industry,strengthen the legal supervision environment,and improve the internal governance structure.In accordance with their own situation,choose the appropriate program to stimulate.