Study On The Implementation Effect Of Equity Incentive Plan Of Sanquan Food

In today’s business activities,with the expansion of enterprise operation,the ability and quality of enterprise owners may not meet the needs of supporting the further development of enterprises.Therefore,more and more enterprises adopt the business mode of separating the rights of owners and managers,so as to solve the conflict of interests between owners and managers in the original enterprises Separation of operation and management rights.Since the 1930 s,the principal-agent theory put forward by American economists Burley and miens has opened the prelude of modern corporate governance.The principal-agent system has become the mainstream mode of enterprise management in the current business activities,especially in the listed companies,which highlights the remarkable results.After nearly a century of continuous argumentation and Research on corporate governance at home and abroad,it is found that equity incentive system can effectively reduce the principal-agent cost.In order to reduce the friction between the owners and the managers,and to reduce the friction between them,it is more conducive to the expansion and development of the company.Equity incentive can help executives pay more attention to the long-term development of the enterprise when making business decisions and strategic allocation,and reduce the short-sighted behavior caused by the operators’ self-interest and pursuit of short-term business objectives,which damages the business development or enterprise owner’s rights and interests.Sanquan Food Co.,Ltd.is a leading enterprise in China’s frozen food industry.Its founder is Mr.Chen Zemin,chairman of the board of directors.In the early stage,it was a family private enterprise.In 1993,1998 and 2003,the company experienced the development and transformation from private partnership to limited liability company and then to joint stock company.Finally,it was listed in 2008.After the acquisition of "Longfeng entity" in 2014,Sanquan food business was further expanded.The equity incentive plan was launched in early 2014,hoping to stabilize the management of the company after M & A,and implemented the first equity incentive,and then improved the deficiencies of the first equity incentive plan in the second equity incentive plan.In this paper,Sanquan Food Co.,Ltd.is selected as the research object for case analysis.Combined with the background of the company and the motivation of the implementation of the equity incentive scheme,combined with the comparative analysis of the implementation of the two schemes,and through the financial indicators and non-financial indicators,the performance of the equity incentive scheme is analyzed,Put forward improvement suggestions for the problems.Through the analysis of this case,we can find that after the implementation of the equity incentive scheme,the financial indicators of Sanquan Food Co.,Ltd.have improved.We can see that the equity incentive scheme plays a positive role in improving the company’s performance.And the effective equity incentive scheme is also conducive to the company to strengthen investor information and enhance the company’s market value.We hope that through the research on the equity incentive scheme of Sanquan Food Co.,Ltd.,it can provide reference for other listed companies in the design of equity incentive scheme,and provide beneficial ideas for solving the problem of principal-agent cost and brain drain of the company.