Analysis On The Influence Of Equity Incentive On Corporate Performance Of Huawei

The foundation of enterprise development lies in management.In modern enterprises,there are conflicts of inconsistent interests between managers and owners,which is the principal-agent problem in modern enterprise system.In order to solve this problem,in the process of enterprise development,the interests of enterprise operators and owners tend to be consistent,and some management mechanism is needed to unify the interests of owners and operators.Equity incentive to a large extent to solve this problem.Huawei,a large private communication enterprise,cannot be avoided when equity incentive is mentioned in China.Huawei's success in designing equity incentive system is worth studying and learning by many enterprises in the exploration stage of equity incentive.This paper conducts horizontal and vertical quantitative research on the equity incentive system of huawei,and draws inspiration through summary and analysis,so as to provide reference for enterprises in need.In this paper,case analysis and comparative analysis are combined.Select huawei's equity incentive system as a case study,focusing on the huawei indicators before and after the implementation of TUP plan.Firstly,this paper summarizes the research on equity incentive system at home and abroad,and introduces the relevant theories and main implementation modes of equity incentive system.Then against huawei from every creation from the implementation of equity incentive system,huawei is summarized in the different period,the main characteristics of the implementation of equity incentive system,and then against huawei TUP plan in implementing the relevant situation before and after the change,financial indicators and non-financial indicators for longitudinal comparative analysis of financial indicators profitability,solvency analysis,non-financial indicators selection market share and innovation ability,through the analysis,found that the equity incentive system in improving corporate profitability,market share and effective innovation ability,etc.In terms of horizontal analysis,zte,which is also one of the outstanding companies in the communication industry,is selected to compare the equity incentive objects,scale and intensity of the two companies in the same period,and compare the financial indicators such as sales revenue and net profit to illustrate the success of huawei's equity incentive system.By analyzing the reasons for the successful implementation of equity incentive,this paper summarizes the relevant experience for reference,and provides the reference direction for the enterprises in need.In order to achieve success,enterprises should not only learn the successful experience of other enterprises,but also timely adjust their development strategies according to their own conditions to find management mechanism innovation suitable for their own enterprises.