Effectiveness Research On Manufacturing Core Employees Stock Incentives

"Accelerating construction of a strong manufacturing country and development of advanced manufacturing industries" put forward in the 19 th National Congress of the Communist Party of China demonstrates the important role of China's manufacturing optimization and upgrading in China's economic development.At this stage,the transformation and upgrading of manufacturing industry largely relies on the improvement of its independent innovation capability,which is closely related to the core personnel who master key technologies.As the carrier of innovation capability and the source of added value,the passion and innovation of those core talents of the manufacturing industry have an impact on enterprises development and are important in the upgrading of industrial structure.For this reason,the core personnel equity incentive has gradually become a normalized incentive method,and has been widely used by listed companies in this industry.However,there are few studies on the effect of this method,and the theoretical research is not consistent with the actual implementation.In view of the importance of core personnel equity incentives for the optimization and upgrading of enterprises and even industrial structure,the paper launches a study on the effect of equity incentive to core personnel in Chinese manufacturing industry.This paper mainly expounds the concept definition and related theories of core employees stock incentives,and combs the development of stock incentives for core employees in manufacturing.Then the paper states the mechanism of the core employees stock incentives and use empirical examinations to support its utility theory study.Finally,the Daleng Restricted Stock Incentive Plan is selected as the case study object to specifically analyze the reasons and main contents of the firm's core employee stock incentives.The effect on corporate performance from the core employee stock incentive plan is analyzed in detail impact of the financial indicators,EVA and other aspects.The conclusions of this paper are as follows: First,a reasonable incentive ratio will mobilize the subjective initiative of the core personnel,which has improved the firm's performance through some aspects,especially in the year of implementation and the next year.However,due to the lack of post-incentive assessment,the impact of such incentives is difficult to sustain.Secondly,based on the analysis of the effect of implementing core employee stock incentives in Daleng,it is found that the step-up assessment conditions in line with the firms' development level are important prerequisites for the effectiveness of stock incentives.In order to maintain the effectiveness of incentive effect for a long time,the listed companies can use the incentive program to complete the performance limit conditions to ensure the continuity of the incentive effect.In addition,the government and regulatory authorities need to speed up the pace of improving related laws and regulations,thereby providing policy support and institutional guarantees,which will escort the development of core employees stock incentives.At present,the research on core employees stock incentives is limited to its impact on corporate innovation.On the contrast,this paper takes the core employees of manufacturing as the research object and discusses its effect on corporate performance.The possible incremental contributions of the paper are as follows: First,this paper analysis the current situation of stock incentives for manufacturing core employees and comparison with the US incentive plans,looking forward to the future development trend.Second,analyzing the mechanism of action,clarifying stock incentives,core employees and corporate performance.Third,it exams the role of core employees stock incentives in the performance of the firms through empirical tests.Fourth,it exams the impact of core employees stock incentives on the corporate's economic and non-economic performance based on the case analysis.However,due to the availability of data,the period of case study is short,and it is difficult to fully reflect the long-term impact of the stock incentives of Daleng on its corporate performance.