Research On The Effect Of Executive Incentive On Corporate Performance

In order to achieve long-term development in the fierce competition,enterprises need to think about how to maintain their core competitiveness which is known as the most fundamental way for the development of enterprises.The most important thing to maintain and improve the competitiveness is to make full use of human resources.In the extensive human resources of enterprises,senior managers are the cream of many talent resources,but the quantity is scarce but the quality is excellent,which can play a key role in improving the production and operation of enterprises.How to motivate senior managers to give full play to talents is an important problem that enterprises need to solve at present.To this end,many enterprises have adopted executive incentive means,including performance-based pay,equity incentive,pay gap and other colorful forms,in order to increase the stickiness of executives while fully stimulating their potential,so as to further improve the performance of enterprises.Scholars at home and abroad are rich in empirical research on executive incentive.Different from them,based on specific enterprises,this paper chooses H company,the leading enterprise in household electrical appliances industry,as the research object.On the basis of making full use of comparative analysis and event research,it first analyzes that the current executive incentive means of H company are mainly focused on performance salary incentive and non restricted stock incentive,which involves the training and promotion of employees.Then from the market reaction,financial performance and non-financial performance,it analyzes how executive incentive affects corporate performance.The main conclusions are as follows: executive incentive can bring all-round and multi angle positive influence to enterprises,but it still needs to be improved to achieve better incentive effect.Then,based on the above conclusions,the author reflects on the existing problems of executive incentive and puts forward several practical suggestions,aiming to provide some thinking for other enterprises in the design of executive incentive program,and further increase the efficiency and practicability of executive incentive program.