A Study On Equity Incentive Scheme For Haier Company

Equity incentive,as one of the ways to solve the agency problem,has been adopted by more and more domestic listed companies in recent years.But in fact,equity incentive entered our country relatively late.In China,both the theoretical research on equity incentive and the practical experience of enterprises are relatively scarce.Although Qingdao Haier is not one of the first companies in China to implement equity incentive,it is one of the few companies in China to successfully implement multi-period equity incentive plan.From the launch of the first incentive plan to the end of the implementation of the fourth incentive plan,it has accumulated a lot of experience and lessons.This paper hopes to summarize the successful experience of Haier through the study of its implementation of equity incentive,and give some Suggestions to listed companies planning to implement equity incentive.Based on the relevant theories of equity incentive,this paper analyzes the detailed content,specific motivation and implementation effect of equity incentive plan implemented by Qingdao Haier through literature research,financial index analysis and event analysis.It is concluded that the equity incentive plan implemented by Qingdao Haier has a positive effect on the company’s performance.Finally,some suggestions on the formulation and implementation of equity incentive schemes are put forward.I hope to enrich the academic research in related fields,and also hope that equity incentive can play a bigger role in China’s market economy.