Research On The Choice And Effect Of Equity Incentive Mode Of Haida Group

Equity incentives can enhance employees’ loyalty to the company,help solve agency problems,promote the synergy of interests among employees,operators,and owners,and facilitate the long-term development of the enterprise.With the continuous introduction and improvement of laws and regulations related to equity incentives in China,more and more enterprises choose to implement equity incentives.According to the CSMAR database,a total of 3650 listed companies have announced equity incentive plans since 2006 and by the end of2021.The selection of equity incentive models is the first issue to consider when designing equity incentive plans.Enterprises have different development characteristics at different stages of their lifecycle.Previous studies have found that there is an adaptive matching relationship between equity incentive models and the development stages of the enterprise’s lifecycle.Enterprises can choose equity incentive models that are suitable for their actual development at different stages in order to maximize the positive effects of equity incentives and promote the long-term development of the enterprise.This article selects Haida Group,a leading enterprise in the feed industry,as a case enterprise,and introduces the theory of enterprise lifecycle to study the selection rules,implementation effects,and mechanism of Haida Group’s equity incentive mode.It is hoped that the leading enterprise can play a demonstration role and provide certain experience for other companies in the same industry to design equity incentive schemes and choose incentive modes.Firstly,the academic research on the selection,implementation effectiveness,and enterprise life cycle of equity incentive models was summarized.Then,the life cycle of Haida Group was divided and the adaptability of Haida Group’s equity incentive model selection and life cycle was analyzed based on four equity incentive plans;Then,a horizontal and vertical comparative analysis is conducted on the implementation effect of equity incentives in Haida Group from three aspects: financial performance,non-financial performance,and market response.Furthermore,the mechanism of implementing equity incentive models in different periods is analyzed to explore how equity incentives in Haida Group promote enterprise performance growth.Based on this,evaluate the implementation effect of equity incentives in Haida Group,and draw conclusions,possible optimization suggestions,and research insights.Through the analysis of the equity incentive case of Haida Group,it is found that the incentive mode chosen by Haida Group for implementing equity incentive is in line with its development stage.From the perspective of implementation effectiveness,the equity incentive model chosen by Haida Group has generally been positive and effective.Through further research on the mechanism of different equity incentive modes,it is found that the stock options of Haida Group in the growth and re growth periods promote enterprise performance through the risk-taking effect,while the mature Restricted stock promote enterprise performance through the benefit synergy effect.Overall,the selection of equity incentive models by Haida Group is in line with its lifecycle stages and has a certain positive impact,but there are also some shortcomings in the design of incentive plans.Therefore,when implementing equity incentives,enterprises should choose appropriate equity incentive models and design more reasonable incentive plans based on their development situation,in order to make the incentive effect more sustainable.