Research On The Motivation And Effect Of Equity Incentive Under The Dual Ownership Structure Of Xiaomi Group

In China,under the long-term influence of "equal shares and equal rights",there have been problems with the prospects of expanding companies and the relationship between employees and management.Therefore,how to ensure the rights of shareholders and motivate employees has become an inevitable element in the implementation of equity incentives,which has been adopted by most companies.In recent years,equity incentives have been widely used in corporate governance as a means of motivating employees and management in listed companies.This is a long-term incentive method that can not only motivate employees but also alleviate agency issues.Xiaomi Group is a leading enterprise in the field of smartphones in China,mainly providing communication and electronic products to consumers.Therefore,this article takes Xiaomi Group’s equity incentives as a case study of the enterprise,mainly studying the motivation for Xiaomi Group to implement equity incentives and the impact of equity incentives on performance under a dual equity structure.Xiaomi Group has implemented multiple rounds of equity incentive plans before and after listing,which are not only rich in content but also diverse in form,ensuring that the interests of the company’s executives,employees,and shareholders are aligned.This article mainly consists of the following aspects.Firstly,it introduces the research background and significance,and then it introduces the relevant theories and basic overview of the enterprise.Next,the plan adopted by Xiaomi Group to implement equity incentives and the reasons for implementing equity incentives are introduced.Next,we will mainly evaluate the effectiveness of equity incentives implemented by Xiaomi Group,including financial performance and non-financial performance evaluations.After analysis,this article believes that Xiaomi Group’s equity incentive plan has to some extent improved the performance of the enterprise,and from the perspective of financial performance,it can be seen that Xiaomi Group’s performance level is constantly improving and its development ability is gradually improving.From the perspective of non-financial performance,the market share has been increased,and the strategic goals implemented by the enterprise can be achieved.Finally,draw a conclusion and draw conclusions on the advantages and disadvantages of Xiaomi Group’s implementation of equity incentives based on the above analysis,and provide prospects.The focus of this paper is to analyze the performance of equity incentives under the dual equity structure implemented by Xiaomi Company.Dual equity mainly ensures the stability of Xiaomi Group’s control,and Xiaomi Group’s implementation of equity incentives can not only strengthen the company’s core capabilities,but also lay a solid foundation for the company’s future development.And through studying the motivations of Xiaomi Group,this article concludes that the main reasons for implementing equity incentives include policy support,maintaining founder stability,attracting talent,and motivating employees.However,in the process of implementing equity incentives,there are problems such as single exercise conditions and inadequate supervision.Therefore,Xiaomi Group should establish and build a comprehensive performance evaluation system,and on this basis,develop an equity incentive implementation plan that is more suitable for the development of the group.Based on the company’s own regulatory situation,effective regulatory plans should be proposed to provide suggestions for equity incentives for similar enterprises.At the same time,providing solutions and suggestions on how to use equity incentives to promote consistency of interests between employees and shareholders can further improve China’s equity incentive system.