Research On The Behavior Of Family Enterprises Using Equity Incentive To Occupy The Interests Of Minority Shareholders

in the family listed companies,on the one hand,because of family enterprises is mainly controlled by the company’s actual person or family members to manage and control company,family members of the family business is often bound to the interests of the community,through the concentration of ownership structure and high seat on the board to achieve control of the family,the family as a whole has strong motivation occupy non-family shareholders’ rights and interests,The second type of agency problem in which family controlling shareholders usurp the interests of outside shareholders through hollowing out is significant.Such behavior not only seriously infringes on the rights and interests of minority shareholders,but also reduces the sensitivity of executive compensation and performance,and reduces the value of the company,causing great harm.This article is based on its share of big shareholders for medium and small shareholders interests encroach on case,specific analysis of case companies exposed,and detailed analysis of its will to the enterprise,the impact of small and medium shareholders,and on the basis of internal governance and external environment of family defects put forward some feasible improvement scheme,research conclusions are as follows:Firstly,the third period restricted stock incentive plan of Wenshi Shares used equity incentive to misappropriate the interests of minority shareholders.The main ways of the incentive include family members,set too low performance unlock conditions and grant price,and the validity period of equity incentive is too short.These behaviors restrict the sustainable development of the company and seriously damage the interests of shareholders.Second,the Wen family’s motives for seizing the interests of minority shareholders by using equity incentives are as follows: the high separation of corporate control and ownership,the maximization of family interests,the psychological imbalance of the management,and the sharp decline in corporate performance caused by the impact of "pig cycle" on the industry.However,the imperfect internal governance structure,immature external environment and weak supervision consciousness of small and medium-sized shareholders of Wen’s shares provide convenient conditions for Wen’s shares to seize the interests of small and medium-sized shares.Thirdly,the strategies to prevent family enterprises from expropriating the interests of small and medium shareholders through equity incentives are as follows: to establish correct value orientation,and to restrain the major shareholders of family enterprises from the perspective of ideology and morality to reduce the pressure of their interests expropriation.Improve the internal governance mechanism of enterprises,give full play to the supervision role of small and medium shareholders to reduce the opportunity of profit expropriation of major shareholders.Correct the mentality of major shareholders and eliminate the excuse of profit encroachment by positive corporate culture.