Case Study On The Failure Of Equity Incentive Of GIMC

Equity incentives are a long-term incentive mechanism for enterprises to encourage and retain core talents,effectively solving the principal-agent problem between shareholders and management caused by the separation of ownership and management rights.In recent years,with the improvement of relevant systems,equity incentives have been widely used in listed companies in China,and the advertising industry is no exception.At present,the competition in the advertising industry is becoming increasingly fierce.In order to better maintain the company's development momentum,improve business performance,and attract and retain talents,the GIMC timely implemented the equity incentives in response to the trend,but ultimately failed due to unsatisfactory implementation results.This paper first reviews related literatures on the motives of the implementation of equity incentives,the implementation effects and the program design elements.Secondly,it introduces the development process and implementation status of equity incentives of listed companies and advertising industry in China.Finally,Combining theory with practice,to analyze the motives,implementation effects and influencing factors of the implementation of equity incentives by the GIMC,and optimize the design of the program.Specifically,it includes: Firstly,it introduces the general situation of the GIMC,the incentive motivation,the incentive plan and the implementation process.Starting from the motivation of equity incentives,it analyzes the implementation effect of equity incentives in terms of company growth ability,company performance,talent abandonment options and loss;Secondly,it analyzes in detail the factors affecting the failure of equity incentives of the GIMC from the perspective of design of the program elements;thirdly,optimizing the design is to make up the defects of the design.The selection of the case in this paper is time-sensitive and representative.The research results are intended to provide reference for the GIMC and other listed companies in the advertising industry to design scientific and reasonable equity incentive plans,and enrich the research on the specific application of the relevant provisions of state-owned holding companies' equity incentives in listed companies.It has certain reference significance for improving China's equity incentive system.