Analysis On The Implementation Effect Of Equity Incentive Of Wens Co.Ltd

On the 13^th of July,2016,the China Securities Regulatory Commission issued the“Measures of the Administrative of Equity Incentives of Listed Companies"to further improve the relevant regulations on restricted stocks and stock options,which provides more autonomy,guidance and convenience for listed companies to implement the equity incentive system.The improvement of the external environment and policies have encouraged more and more companies to implement the equity incentive plans in order to motivate their employees to work hard spontaneously,to achieve the company’s strategic goals together and to promote the development of the company.In the end of December 2017,the Central Rural Work Conference held a comprehensive analysis of the situation and tasks faced by the"three rural"work,did research and proposed the implementation of rural revitalization strategies,and also pointed out that it is necessary to support the cohesion of small farmers and modern agricultural development,which brings new development opportunities for the large-scale breeding enterprises.At the same time,the specific risks in animal husbandry industry such as strict environment protection policies,the price fluctuation of pork and epidemic diseases have intensified.In addition,the trend of large-scale breeding and industry-specific risks have made higher requirements to the management level of the enterprises under the new developing opportunities.Also,the focus of corporate competition has gradually changed to competition among core talents.Companies urgently need to find a way to motivate their employees to create greater values,so that they can retain their core talents and cultivate their competency.Equity incentives will closely link the incentives to their core talents with the continuous growth of corporate value.It has become a relatively direct and effective incentive method to encourage core talents to contribute to corporate development by sharing corporate profits.For now,based on the cases studied on the implementation effect of equity incentives,we can draw the below conclusions.From the enterprise aspect,equity incentives are mainly existing in the state-owned enterprises under the background of the mixed reform.From the industry aspect,they are mainly existing in science and technology innovation companies that rely on human capital,especially high-tech talents.However,for agriculture,especially for animal husbandry,cases studied on the implementation effects of equity incentives are basically blank.Based on this background,this article selects Wens shares,a representative company in the pig breeding industry that has issued two restricted stock incentive announcements,as the research object.It will start from the introduction of its company background and the two-phase restricted stock incentive plan,focus on the first phase restricted stock incentive plan happened in 2018,to explore the necessity and feasibility of the implementation of the plan.We will use case analysis method,event research method and financial analysis method to study and multi-dimensionally analyze the implementation effects on the performance,and to make corresponding suggestions based on the analysis of their selected equity incentive method,performance unlocking conditions and exit price during the implementation process.We hope that the above research conclusions and suggestions can provide practical reference for other animal husbandry industry enterprises to implement equity incentive plans in the future,and to provide case support for the theoretical research on the effect of equity incentives in the animal husbandry industry.