Research On The Implementation Effect Of Changan Automobile Equity Incentive From The Perspective Of Strategic Transformation

With the increasingly perfect laws and regulations related to equity incentive in China,the development of equity incentive in China has gradually matured,and more listed companies tend to implement equity incentive to solve problems such as high agency costs,unstable talent teams,and lack of management constraints.However,some enterprises did not integrate their own development strategies when designing equity incentive schemes,but blindly followed the trend and regarded equity incentive as a panacea,which ultimately ended in failure.The implementation of equity incentives should be combined with the strategic direction of the enterprise.If an enterprise blindly copies the equity incentive plans of other enterprises without considering its own development strategy,the implementation effect will be greatly reduced,and even bring negative impacts to the enterprise.As one of the representatives of China’s automotive industry,Chang’an Automobile launched two equity incentive plans in 2016 and 2020,and launched a strategic transformation from traditional manufacturing vehicles to new energy vehicles in the year following the launch of the first equity incentive plan.Due to the introduction of the first equity incentive plan before the strategic transformation of Chang’an Automobile,the first equity incentive has not been well combined with the strategic transformation,resulting in improper selection of incentive models,lack of targeted incentive targets,and lack of rationality of exercise evaluation indicators.Overall,the incentive effect is poor.After learning from the lessons of the first equity incentive,the second equity incentive plan of Chang’an Automobile made up for the shortcomings of the previous plan,and closely linked the design of the equity incentive plan to the strategic transformation of the enterprise,making Chang’an Automobile achieve adverse performance growth in the overall downturn environment of the automotive market,achieving good incentive effects.Therefore,this article selects the two equity incentive schemes of Changan Automobile as a case,and combines the background process of its strategic transformation to conduct a comparative analysis of the design and implementation effects of the two equity incentive schemes.It summarizes the advantages and disadvantages of the equity incentive schemes of Changan Automobile,and then puts forward relevant optimization suggestions.It is hoped that it can provide reference for other enterprises in the strategic transformation stage to implement equity incentive,enrich theoretical and practical research in relevant fields.Firstly,in this paper,the literature research method is used to sort out the relevant literature on equity incentive and strategic transformation,introducing the relevant concepts and theoretical basis of equity incentive and strategic transformation.Secondly,in addition to introducing the motivations and strategies for Changan Automobile’s strategic transformation,a comparative analysis of the two equity incentive plans of Changan Automobile is also conducted,intuitively reflecting the differences in the design of the two equity incentive plans.Thirdly,objectively evaluate the implementation results of the two equity incentives of Chang’an Automobile from three perspectives: financial performance,non-financial performance,and capital market,and draw a conclusion that the first equity incentive effect of Chang’an Automobile is poor,while the second equity incentive effect is good.Finally,evaluate the design of the two phase equity incentive plan for Changan Automobile,and provide relevant optimization suggestions based on the problems existing in the first phase equity incentive of Changan Automobile and the successful experience of the second phase equity incentive.