Discussion On Stock Equity Incentive Of Joyoung

With the acceleration of the process of economic globalization,our country is also learning and changing in modern enterprise management.As the most commonly used means of modern enterprise management,equity incentive plays a very important role in stabilizing management,reducing moral hazard and enhancing the competitiveness of enterprises.However,compared with other countries,China's economic and policy environment has some differences.The experience of equity incentive of foreign enterprises is not fully applicable to Chinese enterprises.With more and more enterprises implementing equity incentive in China,how to rationally formulate equity incentive scheme and achieve the best incentive effect has become an important issue in China.Because of immature experience and inadequate market research,many companies have not achieved good results in equity incentive,even in the process of equity incentive has been revoked.Joyoung shares started from the beginning of the soya bean milk machine to become the current small household appliance giant,Joyoung shares can still take a firm foothold in the fierce market competition,and Joyoung shares own technical ability,sales ability and enterprise management ability is closely related.The result of the two equity incentive in 2011 and 2014 is a classic case.Therefore,this article selects the shares as a typical case study.Firstly,this paper elaborates the concept of equity incentive,and combs the relevant literature of equity incentive through literature review at home and abroad,mainly on the relationship between management compensation and corporate performance,as well as the effectiveness of equity incentive and the factors affecting its effectiveness.On the basis of these theories,through the analysis of the general situation and the implementation background and content of the two equity incentive,the paper analyzes the financial indicators and non-financial indicators of the implementation of the two equity incentive plan of the shares and analyzes the reasons for the difference of the two equity incentive results through the two comparative analysis.Finally,the relevant conclusions and the listing of China's stock market are listed.Enlightenment of company equity incentive.This paper draws the following conclusions: Firstly,listed companies must analyze incentive motivation when carrying out equity incentive,grasp the timing of implementation of incentive schemes,incentive motivation,timing,equity incentivescheme design will determine the effect of equity incentive,each step is indispensable.Secondly,not all listed companies are suitable for equity incentive.We should formulate a scientific equity incentive plan according to their own development stage.Third,equity incentive is only a measure with short-term impact.Therefore,listed companies themselves should optimize their internal governance and improve their management and technology.Fourth,every equity incentive can not be smooth sailing.Listed companies should also establish a risk prevention and control mechanism to react quickly to some abnormal behaviors and avoid further negative effects arising from equity incentives.