Research On The Effect And Optimization Of Equity Incentive Plan Of Inspur Group

Equity incentive,which is also called option incentive,it's main goal is to encourage and keep the important talents around for making a big difference on company.Equity incentive has developed in to a very important kind of method to encourage workers in the company.Back to the 1950s,Pfizer became the very first one who succeeded in launching and managing to accomplish the plan of stock option in the world.And the result turns out to be very brilliant.In a short period of three decades,equity incentive has already become a frequently used method among the corporations in America.The equity incentive development in China is far later than the U.S.Due to the environment of China,the development is slow.As a series of laws on the equity incentive being launched,the reform of equity incentive began to develop rapidly.The study on equity incentive plan in China started relatively late.But it has been developing with an astonishing speed.After the share reform was taken out in 2005,a series of regulations was introduced to encourage companies to started their own equity incentive plans.By the year of 2018,there has been 1,401 companies who have constructed their own incentive plan.Yet by terms of business performance,not all of them was significantly effective,including Inspur Group,one of the earliest IT brands of China.This paper adopts methods such as literature research method,financial index method,power function method and event research method.The article analyzes the financial effects of the equity incentive plan of Inspur Group.While evaluating the results,the article studies the comparison of financial indicators among enterprises in the same industry.After analyzing the financial statement of Inspur Group from 2013 to 2017 by method of efficacy and coefficient,it is found that the incentive effect of equity incentives on the performance of Inspur Group is not obvious.In addition,neither the financial performance,nor the value of the enterprise or the attraction and encouragement of the core talents benefited from the equity incentive plan.Therefore,the equity reform implemented by Inspur Group is undoubtedly a failure,and it is a very worthwhile case for the equity incentive reform of other state-owned enterprises to study.