A Case Study On The Effectiveness Of Robam Equity Incentive

The core idea of stock option incentive is to combine the interests of company and employee,and motivate employees to make better decisions for the company so as to realize the company’s long-term development.It can make the internal governance more standardized and promote the good operation of enterprises.Since the beginning,the theory of equity incentive has been enriched and the law has been improved,which provides the external support for the implementation of Equity Incentive.Therefore,The stock option incentive has become the common incentive means of the enterprise.The research significance of this paper includes:At present,the starting point of implementing stock option incentive is no longer limited in reducing the principal-agent cost,and the form and purpose are more diversified.The pattern of appliance industry has changed,many companies are starting to implement equity incentives to improve employee’s enthusiasm,and improve enterprise value.Although most enterprises of appliance industry have implemented stock option incentive,they have adopted stock option and focused on managers.Robam equity incentives are more specific,including restricted stock and a new type of agency stock ownership plan,in which the agency stock ownership plan is based on a unique agent model,with the aim of increasing the agent’s loyalty,achieve the sales channel sink.The Robam electric appliance focuses on the agent to carry on the stimulation.Therefore,this article takes the Robam as the research object,has studied its stock option incentive implementation process in detail,established a scientific appraisal system to analyze its stock option incentive effect,on this basis summarizes the experience,the purpose is to provide some reference for the same trade.In this paper,financial indicators,Comparative Analysis,Case Studies and other methods are used to analyze the implementation of Robam.First of all,this paper takes the whole situation of equity incentive in appliance industry as a starting point,and compares it with Robam.Then,it studies the implementation process of Robam Equity Incentive plan,and analyzes the effect from three aspects:Financial Performance,R&D team enthusiasm and market share.After the implementation of stock incentive,the relevant indicators have been greatly improved.Finally,this paper summarizes the Robam equity incentive experience for other enterprises to provide a reference basis.The first part is the introduction,which covers the background and significance of this paper.The second part is the introduction of the equity incentive theory.The third part introduces the legal policy,the real estate and the same industry development.The fourth part introduces the implementation of equity incentive in appliance industry,and compares Robam with other enterprises to explain its special features.In the fifth part,the process and effect of Robam equity incentive plan are studied in detail.The study found that Robam implemented 4 incentive plans,which included company Executives,R&D personnel and agents.Through the comparison of financial data,we found that after the implementation of Equity Incentive,the relevant financial indicators have been greatly improved.In addition,this paper also compares the research and Development,channel construction in different years,found that these data also maintain a good upward trend.The sixth part is the conclusion,it provides reference for other enterprises.The innovations of this paper include:Firstly,the research subject of this paper is more special.The traditional enterprises mostly focus on the incentive to senior managers,the equity incentive objects of Robam include managers,R&D personnel and agents.In particular,the agent ownership plan,based on its unique agent sales model,which is unprecedented in appliance industry.Secondly,this paper divides the effectiveness of equity incentive into three aspects.In the validity analysis,this article has included the Channel Development Aspect Index.Finally,the paper compares the data of the Robam with the average value of the industry,so as to exclude the influence of the external environment and other factors,and make the result more convincing.But the disadvantage is that many factors will affect the changes in the company’s financial data,not excluding other factors,the results will be some deviation.