A Study on Motivations and Effects of Equity Incentives in Automotive Enterprises: A Case Study of Great Wall Motors

Abstract

In recent years, the automotive industry pattern of turbulence, talent changes are more and more frequent, the traditional strong car companies are difficult to return to the status of the fuel car era. In this context, many traditional automobile companies have tried to retain or even attract more talents through equity incentives, and Great Wall Motor is not the first one in the industry, but Great Wall is a bit different in terms of the specific implementation level. This paper takes the method of case study to sort out the basis of the content of Great Wall Motor's nearly three equity incentive programs, analyze their implementation effect in depth, and find that the equity incentive program creates more benefits for Great Wall Motor, which makes the company develop sustainably, steadily, and rapidly, and also sets a new model for the industry. Based on this, the company should utilize the medium- and long-term equity incentive methods to deeply explore the internal potential, so as to make the goals of employees, operators, and owners consistent and related to each other, and to realize better operation. Great Wall Motor's form of equity incentives will likely become a compensation model that traditional models will compete to emulate, and this way of retaining talent will also be a major trend in the industry's future development.