Research On The Implementation Effect Of Equity Incentive In Midea Group

Equity incentive is a widely used long-term incentive mechanism,which plays an important role in solving the principal-agent problem and retaining key talents.In the current economic form,the speed of enterprise expansion is faster and faster,the competition is more and more fierce,and the talent gradually becomes the focus of enterprise competition,so the incentive mechanism is particularly important.According to authoritative data,at the end of the 20 th century,in the top one thousand enterprises in the United States,as high as 90% of the enterprises to the middle and senior managers to carry out different degrees of equity incentive.The time of China’s adoption of equity incentive system lags behind that of western developed countries,but with the implementation of the reform policy of non-tradable shares and the introduction of relevant safeguard measures,the system has entered a period of vigorous development in China,and a number of listed companies have implemented equity incentive plans.In modern corporate governance,equity incentive has made remarkable achievements in improving corporate governance structure and enhancing business performance.Midea Group is one of the representative enterprises with more perfect equity incentive methods.This paper summarizes the relevant literature on equity incentive at home and abroad to determine the feasibility of this study.Analyze the development process of equity incentive of listed companies in China and the present situation.This paper adopted the research methods of case analysis,to explore the causes of midea group implement equity incentive,and expounds on the 2017,2018,2019,stock options and restricted stock plan design,through the use of financial performance and non-financial performance evaluation system of midea group effect of equity incentive plan multi-angle in-depth analysis.This paper evaluates the financial performance of Midea Group after the implementation of equity incentive through the research of debt paying ability,profitability,operation ability,growth ability and EVA.The non-financial performance of Midea Group is discussed from the aspects of human capital structure,R&D and innovation ability,market share,core competitiveness and protection of shareholders’ rights and interests.Combined with several factors that influence the implementation effect of equity incentive,such as exercise conditions,incentive objects and evaluation indexes,this paper summarizes the successful experience and shortcomings of Midea Group’s implementation of equity incentive,and puts forward corresponding improvement countermeasures.This paper hopes to provide reference for other listed companies to implement equity incentive through the discussion on the implementation effect of Midea Group’s equity incentive plan.