Research On The Influence Of Equity Incentive On The Performance Before And After The "Defamiliarization" Of Family Business

With the continuous development of China's socialist market economy and the optimization of the external economic environment,China's traditional family enterprises are gradually moving towards institutionalized and professional management,and "de-family" by introducing professional managers or gradually transferring the ownership of the company has become the choice of some family enterprises.As a means to improve the internal governance structure,equity incentive plays a role in enhancing the value of family enterprises and retaining key talents,and provides a driving force for the development of family enterprises.However,in the process of implementing the equity incentive plan,many family enterprises encounter such problems as unreasonable selection of incentive objects,short incentive period,and fictitious performance indicators,and need to further optimize the equity incentive method.Supor is a famous cooking utensil research and development manufacturer in China and a leading brand of kitchen small appliances in China.It is the first listed company in The cooking utensil industry in China.For a long time,Supor cookware has always been the market leader.Its cookware and electrical products have been sold to more than 50 countries and regions including Japan,Europe,America and Southeast Asia through SEB Group.This article about family business at home and abroad for reference,the equity incentive on the basis of theoretical research and practical exploration achievements,such as entrust-agent theory as the instruction,the supor "family-based" before and after the equity incentive plan,implement motivation and so on has carried on the comprehensive analysis,explores the supor "family-based" before and after the equity incentive effects on its financial and non-financial performance,then targeted put forward the supor "to family-based" equity incentive after optimization strategy.The main conclusions are:(1)the supor "family-based" completely under the stage of equity incentive has obvious welfare nature,show the number of incentives,incentives to narrow range,low exercise conditions,less characteristics,and "family" and "completely to family-based" stage supor equity incentive more incentive purpose,its rules,etc,is more reasonable.Due to the different nature of property rights and governance methods,the motivations ofthe equity incentive before and after the "de-familization" of Supor are obviously different,so that the content design and implementation methods of the equity incentive plan are significantly different.(2)The implementation effect of the equity incentive plan in the stage of "de-family-oriented" or "complete de-family-oriented" is better than that of the welfare scheme in the stage of "complete family-oriented"."Completely to family-based" supor has two rights separation characteristics of governance by the force of the equity incentive plan design bigger,exercise conditions,more reasonable,motivation is wider in scope and has good supervision mechanism,and can combine the interests executives and shareholders' interests,to the company value maximization as the goal,more in line with the need of supor's own long-term development;(3)The agency cost of the equity incentive in the stage of "demystification" and "complete demystification" of Supor is significantly lower than that in the stage of "complete demystification",effectively reducing the principal-agent cost,which is more in line with the original design intention of the equity incentive contract and the company's long-term development needs,and more recognized by investors;(4)The three sets of equity incentive contracts launched by Supor have a positive effect on corporate performance as a whole,but the incentive effect in the later stage of "complete de-familization" is more significant and has a greater effect on performance improvement.At the same time,there is a positive correlation between equity incentive and performance.(5)Further optimization of the equity incentive after supor's "de-familization" should focus on designing diversified exercise conditions,introducing equity incentive at a reasonable time and improving the supervision mechanism of equity incentive.