Analysis Of The Implementation Effect Of Sanxin Medical Equity Incentive

In the face of today’s clear development opportunities,how to quickly put yourself in a leading position in the industry is a question that every business owner needs to think about,and how to motivate employees has become a key point that business owners have to consider in the process of development.The essence of equity incentive is to bring employees and shareholders to the same line by issuing equity to them,so that they will not make decisions that are detrimental to the long-term interests of the company for short-term benefits,and to motivate employees to a certain extent to improve the competitiveness of the company in the market.At present,there are few studies on equity incentives in the medical industry.San-Xin Medical is one of the medical companies that implemented equity incentives earlier,and its implementation of restricted stock incentive program is a common way adopted by medical companies,so San-Xin Medical is chosen as the object of exploration.This paper adopts the case study method to analyze the equity incentive programs of San-Xin Medical in recent years and to study the impact of equity incentive on company performance.Firstly,we reviewed and sorted out the related literature;secondly,we explained the current situation of equity incentives in the medical industry and introduced the basic overview of San-Xin Medical and the related contents of the equity incentive program,and analyzed its motivation and mechanism;next,we studied the market performance after the implementation of equity incentives by using the event study method,and analyzed the performance of the company from the learning and growth dimension,the financial dimension,the internal business process dimension,the customer dimension and the corporate governance dimension by using the balanced scorecard.The impact of equity incentives on the long-term performance of the company was analyzed using the balanced scorecard from the learning and growth dimension,financial dimension,internal business process dimension,customer dimension,and corporate governance dimension.Finally,the study found that the implementation of equity incentives had a positive effect on the company’s operation and was a long-term mechanism worthy of recognition.However,there are problems in the process of two restricted stock incentives,such as the lack of clear criteria for selecting incentive targets,the lack of diversification of performance indicators and the lack of corresponding supervision mechanism for performance evaluation.In view of the above problems,this paper proposes three suggestions,which are to clarify the selection criteria of incentive targets,to set multi-dimensional performance evaluation indexes and to improve the performance evaluation supervision system.