Research On Equity Incentive Scheme Of Midea Group

Facing the trend of globalization and the rapid economic development,various economic policies are constantly changing to keep pace with the economic fundamentals.Reforms and improvement of the enterprise system gradually separate the ownership and management right within the modernized enterprise.The fiduciary responsibility exposed the loss of talents caused by the uneven distribution of benefits,the weak sense of ownership and enthusiasm while enhancing the transparency of enterprise operation and increasing the competitiveness of enterprises.Especially in the context of the emergence of the national fiscal policy,the shrinking of staff welfare will exacerbate this contradiction.How to solve the problem of the distribution of benefits among owners,professional managers and general employees is a problem that must be solved in the development of modern enterprises.In this context,the equity incentive system came into being.In the 1990 s,China formally introduced equity incentive system.In recent years,as the capital market has been gradually improved and legal supervision has been gradually put into place,the system of equity incentive has been developed rapidly.In view of this,the design of equity incentive plan,the impact of equity incentive system on corporate finance,performance,strategy implementation and the effect of equity incentive become the enduring topic of the theoretical circle.Taking the two issues of the equity incentive plan of Midea Company as an example,this paper elaborates the analysis and summary of the above problems in detail,and provides valuable practical experience for the A-share listed companies to implement equity incentive plan and scheme design.In this paper,comparative analysis,EVA model analysis,DuPont analysis and other analytical methods are used to fully reveal the motivation of Midea Group in implementing equity incentive,the rationality of incentive plan design and the implementation effect of incentive plan.This article is divided into six parts altogether: The first part is an introduction,which summarizes the background and significance of the research,the research methods and the research status quo about equity incentive at home and abroad.The second part is the definition and overview of the concept of equity incentive,including the concept of equity incentive,the main types,roles and mechanisms,as well as the factors that affect the successful implementation of equity incentive plan.The third chapter is the case summary of Midea Group Equity Incentives,a brief introduction of Midea Group's basic conditions and business strategy,and a summary of the implementation of the equity incentive plan and its characteristics,and then leads to the following motivation analysis of Midea Group's equity incentive plan.The fourth part is a case study.This part is the most important content of this article.It explains the reason why Midea Group's Three Phases of Stock Incentive Plan is implemented from three aspects: macro,meso and micro.Through the longitudinal analysis before and after the implementation and the horizontal direction of implementing equity incentive with other companies in the same industry Contrast,summarize the implementation effect and draw the shortcomings of Midea Group's equity incentive plan,so as to lay the foundation for the following reference and inspiration.The fifth part is the inspiration and reference.Through the analysis of Midea Group's equity incentive,the countermeasures and suggestions are put forward in view of the ubiquitous problems of China's home appliance industry in the implementation of the equity incentive plan.The sixth part is the case summary.This part is combined with the case analysis of the fourth part to summarize and summarize the implementation effect of Midea Group's equity incentive plan,and illustrate the limitations of this article in the writing process.