Research On Motivation And Effect Of Equity Incentive Design Of Midea Group After "de Familialization"

With the promulgation of the "Measures for the Management of Equity Incentives for Listed Companies",in recent years,the equity incentive system has become an effective means for Chinese enterprises to improve their governance capabilities and enhance their corporate value,and it has entered the "era of normalization".As the backbone of my country’s economic development,family businesses are gradually not relying on the father to analyze the sons and hell to let the company inherit and carry forward.Instead,it introduces professional management talents to serve as company executives,or transfers corporate ownership,and family members withdraw from company management and dividends.The way of familyization has become the direction of corporate transformation.However,under the "de-familyization" approach,entrusted-agent problems come with it.Many companies choose to use equity incentive systems to alleviate the principal-agent problems.The author selects Midea Group Co.,Ltd.(hereinafter referred to as Midea Group)as the case object.As a giant in the family business,Midea Group did not implement equity incentives before "defamilyization",but began to implement equity incentive plans after "defamilyization".This article first combs the existing literature,combines theoretical research and case analysis,and divides the design motives of equity incentives into two types,namely welfare motives and incentive motives,to lay a theoretical foundation for the subsequent analysis of the mechanism of the equity incentive system;Analyze the five-phase equity incentive plan implemented by the case company after "de-familyization" from three perspectives,and conduct an in-depth study of its incentive motivation based on the equity incentive plan implemented after the "de-family";Vertical comparison of financial indicators and the use of event research and economic value-added methods to analyze the effect of Midea Group’s equity incentives after defamilyization.The study found that Midea Group’s financial performance indicators and non-financial performance indicators are significantly better than some home appliance companies that have not implemented equity incentives,which shows that the equity incentive plan implemented by the case company after defamilyization is valuable and has obvious incentive motives.Through the research and analysis of the implementation effect of Midea Group’s equity incentives,this paper verifies that its design motives are incentive-based,and provides a wider range of ideas for supplementary equity incentives,and serves as a reference for the design of equity incentive schemes for family businesses.