Research On The Implementation Effect Of Midea Group Equity Incentive Plan

Nowadays,China’s economy is developing rapidly.At the same time,it also means that there will be fierce competition in China’s market.Therefore,in order to effectively improve the competitiveness of enterprises in their industries,most enterprises will implement equity incentive policies.This kind of policy can effectively improve the work efficiency of employees,and greatly increase the enthusiasm of employees,which can maintain the stable development of the company to a certain extent.The equity incentive policy can be understood as follows: the employees with excellent quality and strong ability can get part of the equity given by the company.After they get the equity of the company,they can participate in the research and decision-making of major events of the company.In this way,the sense of life and responsibility of the employees in the company can be increased.Theoretically,this incentive system is effective for a long time,and also provides favorable conditions for the sustainable and stable development of the company.As Midea Group is one of the more mature home appliance enterprises in China,and has implemented equity incentive plan many times in recent years,this paper takes Midea Group as an example to analyze the impact of equity incentive policy on the company’s operation and development.Firstly,it introduces the general situation of Midea Group and the motivation of implementing equity incentive;Secondly,it describes the content of Midea Group’s equity incentive plan,and compares it with Gree Electric and Haier Zhijia’s equity incentive plan;Secondly,the financial indicators of Midea before and after equity incentive are compared,and the impact of equity incentive on financial performance is analyzed;Through the analysis of Midea’s product market share,innovation ability,employee structure and other non-financial indicators,this paper evaluates the impact of equity incentive on non-financial performance of enterprises.The results show that: for the implementation of equity incentive policy,Midea Group is more successful,equity incentive policy has played a positive role in the company’s operation and is conducive to the long-term development of the company.Finally,through the summary of Midea Group’s implementation of equity incentive policy,this paper sums up the shortcomings in the implementation process:single performance evaluation conditions;The setting of exercise price is too low;The corporate governance structure is not perfect.At the same time,the paper analyzes the shortcomings of the paper,and obtains the research enlightenment.For example,enrich the performance evaluation conditions;Reasonable setting of exercise price and so on,in order to help other companies to carry out the equity incentive plan.