| Equity incentive sprouted in the United States in 1952.It was first launched by the PITZER company in order to avoid paying high income tax due to the high cash remuneration of the enterprise executives,which represents the beginning of the equity inventive.In 1956,American Luis Kelso and other economist created another type of the equity incentive,which the employees own the equity of the firm.After that,equity incentive models such as employee ownership plan and stock option plan were launched one after another and the equity incentive started to be popular in the world.At first,the equity incentive plan aims to reduce agency costs,reduce executives’ self-interest behavior,alleviate the contradiction between shareholders and managers,attract qualified personnel,improve corporate performance,promote the long-term development of enterprises and full utilize the“incentive”role of the equity incentive plan.However,in enterprises with weak corporate governance environment,affected by the managerial power hypothesis,the hypothesis of rational man,the self-interest motivation of managers,may set the welfare-based equity incentive scheme with easy exercise conditions to transfer the economic benefits to senior executives.As the motivation for welfare-based equity incentive scheme is not to improve the company’s performance,its role in improving the company’s performance and promoting the long-term development of enterprises is less than that of incentive-based equity incentive scheme.The type of equity incentive scheme and the design of equity incentive scheme are very important to the implementation effect of equity incentive.Taking Gree Electric Appliance Inc.as an example,this paper evaluates and studies the half priced shareholding plan of the Gree Electric Appliance Inc.,which has aroused widespread controversy since it was announced to the public through the case study methods and the literature research methods.On the one hand,through the case study of Gree Electric Appliance Inc.’s equity incentive scheme,this paper puts forward the identification mechanism of welfare-based equity incentive scheme,analyzes the methods and means of the welfare-based equity incentive,tests the economic consequences of welfare-based equity incentive,and makes suggestions,hoping to provide reference for other enterprises.on the other hand,by comparing the equity incentive scheme of Gree Electric Appliance Inc.with the equity incentive scheme of Midea group in the same industry,this paper obtains the characteristics and identification mechanism of welfare-based equity incentive scheme and incentive-based equity incentive scheme,so as to enrich the relevant research of equity incentive. |
