Research On Shanxi Fen Wine Equity Incentive Based On Mixed Ownership Reform

In 2016,the State-owned Assets Supervision and Administration Commission of the State Council,the Ministry of Finance and the Securities Regulatory Commission jointly issued the Opinions on Piloting Employee Shareholding in State-controlled Mixed Ownership Enterprises,which made detailed provisions on all aspects of the pilot,laying an important theoretical foundation for mixed ownership enterprises to carry out employee shareholding.In 2019,the State Council issued the Notice on Matters Relating to Further Improving the Work of Equity Incentives for Listed Companies Controlled by Central Enterprises,and released signals to continue promoting mixed ownership reform and the adoption of share ownership incentive programs in state-owned enterprises.On this basis,the article chooses Shanxi Fen Wine to be the case research object and applies the methods of literature research,case study,event study and comparison analysis to investigate the equity incentive plan of Shanxi Fen Wine based on the mixed ownership reform,in order to enrich the existing case studies of equity incentives of state-owned enterprises based on the mixed ownership reform.Firstly,the specific content of Shanxi Fen Wine’s mixed ownership reform-based share incentive scheme was presented.Secondly,the motives and paths of its implementation were analysed.Lastly,its implementation effects were studied in terms of financial performance,non-financial performance and market reaction.The analysis shows that Shanxi Fen Wine has created a good environment for the introduction of share options through mixed shareholding reform,which has laid the foundation for the equity incentive to play its incentive effect smoothly.The main motivations for the implementation of equity incentives are to mitigate the principal-agent problem,build long-term incentives,engage and attract outstanding talent and enhance the governance structure of the company.In terms of effectiveness of implementation,Shanxi Fen Wine’s equity incentive based on the mixed ownership reform has driven improvements in financial results and has had a clear effect on Shanxi Fen Wine’s earnings and operations,while also enhancing non-financial aspects of performance such as employee qualification standards,and the market has also given a positive attitude in terms of long-term response.Based on the previous analysis,the successes and shortcomings of Shanxi Fen Wine’s equity incentive scheme based on the mixed ownership reform are summarised.The successes include the selection of suitable incentive targets based on its own development strategy,the selection of a suitable equity incentive model for itself and the challenging and reasonable unlocking conditions set.On the downside,the lack of long-term incentives,the single assessment index and the lack of dynamic combination of equity incentives and staff positions.The paper ends with suggestions on the shortcomings of the earlier mentioned Shanxi Fen Wine’s share incentive scheme based on the mixed ownership reform.The equity incentive scheme implemented by Shanxi Fen Wine on the basis of the mixed ownership reform has effectively improved its operating performance and has also significantly enhanced its competitiveness,contributing towards sustainable development in the future.The research will take the perspective of mixed ownership reform as the point of departure to investigate the motivation,action path and implementation effect of equity incentive based on mixed ownership reform of Shanxi Fen Wine.