Evaluation On The Effect Of Equity Incentive Of Black Sesame Company

Equity incentive has been playing a great role in corporate governance,such as easing the principal-agent relationship,stimulating the potential value of talents,and improving the operating efficiency of enterprises.These can enhance the core competitiveness of enterprises.Since 2005,China Securities Regulatory Commission has continuously updated the management measures of equity incentives to encourage listed companies to implement equity incentives.By the end of 2021,more than 40%of the listed companies in the A-share market had implemented equity incentives.However,the equity incentives of many enterprises have not achieved the expected results.The reason is that the enterprise has not considered the governance focus and incentive target of its development stage to chose the equity incentive model.Food industry has always been the focus of national attention,but its industry access threshold is relatively low,technical barriers are not high,and the competition environment of food industry is increasingly fierce.As the founder of "Black Sesame Paste" products,Black Sesame Company had implemented equity incentive in order to obtain a good growth space,but it backfired,the company didn’t achieve the expected effect because of the lack of matching between the equity incentive method and the enterprise life cycle.Based on previous research results,this paper focuses on the two equity incentive schemes of Black Sesame and uses the balanced scorecard to evaluate the implementation effect of equity incentive from the perspective of enterprise life cycle.The analysis found Black Sesame’s equity incentive plan did not match the company’s life cycle,which weakened the effect of equity incentive on performance improvement.Finally,the paper obtains the inspiration from the case on the optimization of the equity incentive scheme of listed companies: choose the equity incentive model that is appropriate to the enterprise’s life cycle;Select performance appraisal indicators that are appropriate to the life cycle of the enterprise.