H Express Company Equity Incentives Implementation Effect And Optimization Studies

With the vigorous development of China’s economy,more and more enterprises are beginning to realize the important position of human capital in future development,and the core of enterprise competition is shifting to talent competition.In recent years,equity incentives have gradually entered the public eye.Compared with traditional salary systems,equity incentives can bind personal interests with corporate interests,achieve convergence of interests,attract and retain talents,enhance their sense of belonging and work enthusiasm,alleviate agency problems,and have greater appeal.However,due to its late start,there is still a certain gap in the development of equity incentives in China compared to abroad.Many enterprises still have some problems in the formulation and implementation of equity incentive plans,which affects the effectiveness of equity incentives.In recent years,in the context of nationwide e-commerce,the express delivery industry has developed rapidly,and many express delivery companies have entered the capital market to better compete for talent and promote long-term development by implementing equity incentives.This article studies H Express,one of the leading companies in the express delivery industry.This article first combines the current research status of equity incentives at home and abroad with the basic situation of H Express Company to explore the reasons for its implementation of equity incentives,and compares its four phase equity incentive plans and unlocking situations;Secondly,it uses the event study method,index analysis method and other methods to analyze the implementation effect of H Express Company’s fourth equity incentive from three aspects: short-term market response,financial indicators,and non-financial indicators;Then targeted optimization suggestions were proposed for the identified problems;Finally,some conclusions were drawn: firstly,the combined effect of multiple equity incentives will make the short-term response of the capital market more positive,but the adjustment of assessment conditions will trigger investors to question the future development prospects of H Express Company,reduce their investment confidence,and result in poor short-term market response;Second,the implementation of equity incentive will promote H Express to improve its short-term solvency,optimize its capital structure,reduce its management’s risk aversion level,and maintain its development ability.Compared with the first phase,the second phase of equity incentive plays a more significant role,while the third phase of equity incentive has a poor implementation effect.After the subsequent adjustment of the assessment conditions of the second unlocking phase of the third phase of equity incentive,The implementation effect has improved,but in terms of profitability and operational capacity,equity incentives have not significantly promoted the effect;Thirdly,the implementation of the first three periods of equity incentives has played a promoting role in improving H Express Company’s business volume,employee quality,and customer service quality,but the implementation effect of the fourth period of equity incentives is not satisfactory;Fourthly,H Express Company’s equity incentives have achieved certain results,but the results are not ideal enough.The design of the plan still faces problems such as limited incentive scope,unreasonable assessment indicators,and a single incentive model.This article also proposes corresponding suggestions to address these issues,hoping to provide some reference for similar industry enterprises planning to implement equity incentives.