Research On The Failure Of MH Group's Equity Incentive

In recent years,China's real estate industry has undergone tremendous changes.Some real estate enterprises began to implement equity incentive plan to stimulate the growth of enterprise performance,trying to improve the status of enterprises in the industry through equity incentive.The equity incentive plan can play a role in retaining key core hearts and improving enterprise performance in the environment of rapid expansion of market scale,continuous improvement of industry concentration and increasing demand of real estate enterprises for talents.However,nearly one third of the real estate enterprises that have implemented the equity incentive mechanism have failed in equity incentive.Therefore,with the application of equity incentive mechanism in real estate enterprises,the research on equity incentive is particularly important.And in order to avoid more failure of equity incentive in real estate enterprises,it is necessary to summarize the reasons behind the failure and put forward corresponding measures.As a typical representative of the real estate industry,MH group is of great significance in the study of the failure of its three equity incentive plans.From the perspective of failure of equity incentive plan,this paper studies the annual report and other data disclosed by MH group during the implementation of equity incentive plan,and analyzes the relationship between equity incentive plan and corporate performance.According to the degree of employee turnover during the equity incentive period,this paper studies the relationship between incentive plan and retaining core talents.It is found that during the equity incentive plan period,MH group failed to meet the requirements of improving corporate performance and retaining core talents through the incentive plan.Through the review of the process of the three equity incentive plans,this paper summarizes the problems in the failure,such as the range of equity incentive objects is unreasonable,the purpose of equity incentive is not clear,the exercise price is set too high,and the exercise conditions are unreasonable.The specific reasons behind the problems are that there are defects in the design of equity incentive plan,the weak response to the changes of nationalregulation and control,and the neglect of the changes of group management strategy.Finally,through the reasons to find solutions to the problems,the paper puts forward some suggestions,such as making appropriate equity incentive plan,equity incentive plan to meet the needs of business strategy,equity incentive plan and market environment,national policy.This paper proposes three specific measures to help MH group improve its existing equity incentive mechanism,further enhance its market competitiveness,and then promote the long-term and stable development of MH group.At the same time,it can also provide reference for other enterprises in the same industry facing similar situation,and provide more perfect paths and methods for the effective implementation of equity incentive mechanism in the real estate industry.