The Influence Of Equity Incentive On Enterprise Performance

With the increasing competition in the market,enterprises take various incentive means and measures to attract and retain talents,and give full play to their potentials,equity incentive is one of the most commonly used methods.Since the reform and opening up,China's dairy industry has developed rapidly,to study the performance effect of Equity Incentive is helpful to the development of the whole industry,has practical significance.Therefore,in order to supplement the research in this field,this paper selects YILI company,a leading company in dairy industry,as a case study to study whether the equity incentive of YILI company is related to the company's performance and how the performance effect is,and reach a conclusion.YILI company launched three consecutive equity incentive schemes from 2006 to 2019 to retain talents and improve corporate performance.This paper selects the research method of the combination of theoretical research,case analysis and comparative analysis,through the analysis of the three-phase equity incentive plan of YILI,and the comparison with another representative of China's dairy industry,Bright Dairy Company,to summarize the effect of the implementation of the incentive,so as to provide corresponding suggestions.In this paper,the financial indicators and non-financial indicators that reflect the overall development of the enterprise are selected to study.Considering the actual situation of YILI,the short-term and long-term performance effects of YILI equity incentive are analyzed.The results show that there is a significant positive correlation between equity incentive and corporate performance.As a whole,the equity incentive plan of YILI company is reasonably designed,which has significant effect on performance improvement,maintains the consistency of shareholders' interests,company interests and employees' interests,brings more efficient and sustainable returns to shareholders,and achieves the expected implementation effect.At the same time,there are still some deficiencies in the incentive model,exercise conditions and incentive scale.Based on this,some suggestions on the design and implementation of equity incentive are given,which can provide reference for YILI and other companies in the same industry.