Case Study On Equity Incentive Of Qibin Group

Equity incentive is a kind of incentive mechanism to solve the conflict of interest between principal and agent in modern enterprises.It could help to unify the benefit objectives between the managers and the owners of the enterprise,make them jointly bear the operational risks,and work together to improve the company’s performance and enterprise value effectively.However,the incentive effect of equity incentive scheme is determined by the choice of incentive mode and the matching degree of the incentive plan with the characteristics of the enterprise.In this paper,we take Qibin group as an example to explore the the influencing factors and incentive effect in traditional mode of equity entrustment and incentive in manufacturing industry selection.We wish to expand the experience and material of the combination of theory and practice of equity incentive through this study and help to improve the incentive effect of equity incentive in glass manufacturing industry.In this paper,we first make case analysis on the two phases of equity incentive plan implemented by Qibin group in 2012 and 2016.This paper analyzes the market reaction and the change of business performance before and after the implementation of equity incentive plan by using economic event research method and enterprise economic value-added method based on the characteristics of the two phases of equity incentive plan.Secondly,the non-financial performance factors before and after the implementation of equity incentive are studied by using the theories of equity incentive and human capital.Then we get the results that Qibin group has achieved since the implementation of equity incentive,that is,equity incentive weakens the contradiction between the owner and agent of Qibin group to a certain extent,and makes their interest goals converge,so as to improve the core competitiveness of Qibin group in its industry;at the same time,it has also effectively improved the long-term development of enterprises.Finally,we summarize the problems exposed in the implementation of equity incentive in Qibin group,and provide relevant solutions and suggestions,hoping to provide reference for the implementation of equity incentive in traditional manufacturing enterprises.