Research On The Motivation And Implementation Effect Of Robam Appliances Equity Incentive

Since the 21 st century,our country economy continues to stabilize growth.In the process of economic development,science and technology are the most important productive forces,and scientific and technological innovation has shown unprecedented vitality.With the intensification of the reform,the speed of knowledge innovation begins to accelerate,the role of high-end technical talents in economic growth and scientific and technological innovation is more and more prominent,and human capital is becoming increasingly important in China.In a fiercely competitive market,how to retain and recruit the best talent in a reasonable and efficient manner so that the company can emerge as a leader is gradually becoming an issue that more and more companies had to think about at the time.In this context,many listed enterprises began to introduce equity incentive system,involving more and more industries.Equity incentive is a stock interest with additional conditions given to employees,which can realize the linkage of interests between business operators and owners,enhance the sense of belonging,reduce the interest friction between the two sides,alleviate the principal-agent problem to a certain extent,and avoid the short-term behavior of the operators to pursue temporary profits while focus on the long-term interests of the enterprise.However,whether equity incentive can bring significant effects to enterprises is not the same under different circumstances,and the reason needs more exploration and research.Robam Appliances is the leader in the subdivision market of Chinese kitchen appliance,listed on Shenzhen Stock Exchange in 2010.With the ups and downs of the real estate market in recent years and increased competition in the home appliance market,the human capital element is playing an increasingly important role in promoting research,design,development and core technology innovation in kitchen appliances.Human capital elements are playing an increasingly important role in promoting the research,design,development and core technology innovation of kitchen appliances.It is urgent for relevant enterprises to identify core talents,deeply explore their potential value,improve the core competitiveness of the company and effectively promote market share growth and dominance in the industry.Against this background,this paper takes Robam Appliances as a case study.By collating the domestic and international literature on equity incentives,it illustrates the relevant theoretical basis and analyzes its motivation,and presentation of the five phases of the company’s equity incentive program and its implementation since 2014.On this basis,the impact and effect of equity incentives are analyzed and conclusions are drawn from three dimensions: market response,financial performance and non-financial performance.In terms of financial performance,the profitability of the company has been greatly improved,the solvency and development ability have been gradually improved,while the operating ability is generally affected by the agency sales model;in terms of non-financial performance,the human capital structure of the company has been optimized,the agency cost has been reduced,and the R&D innovation ability has been continuously improved.Finally,the inspiration of this case for other enterprises implementing equity incentive is that enterprises should set up equity incentive programs with their own conditions,adopt diversified assessment indexes,and enhance the incentive for R&D personnel.