Research On The Implementation Of Equity Incentive In CA Automobile Group

After the booming development from 2006 to 2016,competition in automobile industry has been more fierce and auto industry has been developing more slowly.Under this background,If various auto companies want to develop for a long time,it is difficult to support it only by relying on past technology accumulation and brand influence.With the development of laws and regulations on equity incentives in China,equity incentive is being widely used in Chinses capital market as a tool to reduce agency conflicts,improve corporate ability of innovation,and attract and retain talents.Nowadays,the automotive companies have also begun to give weight to equity incentive to promote corporate transformation in the era of electrification and intelligence.This paeper chooses CA Automobile Group as the case object,studying its motivation of equity incentive,on this basis,studying the effect of implementation and existing problems,hoping to provide corresponding theoretical and application support for the automobile industry to implement equity incentive.Firstly,this paper elaborates the theories and concepts of equity incentive,and lists the contents of different kinds of equity incentive modes.The merit and demerit of restricted stock mode and stock option mode are emphatically compared.Secondly,chooses CA Automobile Group as the research object,analyzing its basic conditions,and summarizes the motivations of its implementation of two equity incentive projects in 2016 and 2020 from four aspects: external environment changes,internal development needs,talent incentive needs,and future strategic preparation.Thirdly,starting from the motivations for the implementation of two equity incentive projects,analyzing the effect on CA Automobile Group during and after the implementation of equity incentives from the perspectives of economic added value,operating conditions,innovation capabilities,and talent incentives,and discusses whether it has realized the implementation of equity incentives incentive goals.Based on the analysis of the inner and outer conditions of the enterprise,finding out that there are some defects in the equity incentive plan,such as unreasonable performance appraisal,unreasonable equity incentive model selection,unreasonable exercise price,unreasonable setting of equity incentive period,etc.Finally,puts forward the solutions to the problems: setting reasonable performance assessment indicators,appropriately extending the effective period of equity incentive,setting the exercise price that can benefit the employees,and implementing the equity incentive model with multiple models in parallel,etc.Hoping that through the analysis of the problems encountered in the implementation of equity incentive for CA Automobile,it can provide reference for the follow-up implementation of equity incentive for CA Automobile,and at the same time,it can provide certain theoretical support and practical reference for other enterprises in China which are also in the traditional automobile manufacturing industry to implement equity incentive.