Research On Equity Incentive Of Enterprises Without Actual Controllers

In recent years,the number of listed companies without actual controller is increasing.How to realize the long-term development of the company without actual controller through equity incentive is a problem worth thinking deeply.Equity incentive can make core employees of a company acquire shares,so that they become internal shareholders from labor service providers and motivate them to work hard for the company.The information asymmetry between shareholders and executives gives birth to equity incentive,which makes the interests of both sides as consistent as possible,thus alleviating the asymmetry problem and reducing the principal-agent cost.In the past ten years,equity incentive has made some progress.In terms of system design,different equity incentives are different,and different lock-in periods or positions affect the incentive effect.This paper takes Gree Electric Appliances without actual controller as an example,combined with the existing theoretical basis,analyzes the motivation of Gree Electric Appliances’ equity incentive and equity incentive plan,and compares it with Midea Group with actual controller;Secondly,it analyzes the market effect,business performance,innovation effect and social effect of Gree Electric Appliances’ equity incentive,summarizes the possible shortcomings and optimization strategies of Gree Electric Appliances’ equity incentive plan.The research shows that the motivation of equity incentive of Gree Electric Appliances mainly includes reducing the principal-agent cost to improve the company’s internal governance system,improving its own profitability to enhance the company’s core competitiveness,and attracting talents to improve the level of human resources.Through the analysis of Gree Electric Appliances’ equity incentive plan,it is concluded that Gree Electric Appliances’ equity incentive model,incentive object and quantity,grant price and performance conditions are reasonable and scientific.However,there are obvious differences between Gree Electric Appliances and Midea Group with actual controller in the separation of equity dividends and buying and selling rights,performance assessment to safeguard the interests of all parties.In terms of implementation effect,Gree Electric Appliances equity incentive has a positive effect on Gree Electric Appliances stock price in the short term.It can promote business performance including profitability,solvency,operating capacity and growth capacity to some extent;At the same time,it also plays a positive role in Gree Electric Appliances’ innovation and social influence.Finally,this paper points out the possible shortcomings of Gree Electric Appliances’ equity incentive plan,including the small number of equity incentives affecting the incentive effect,the restriction on free disposal of stocks is too strict,the self-management mode may lead to the lack of enthusiasm of employees and the single way of employees’ investment.It also puts forward some optimization strategies including scientific setting of equity incentive distribution plan,optimization of "restricted trading" rules,further improvement of self-management mode and diversification of employee subscription fund sources.