Private Enterprise Life Cycle And Equity Incentive Model Selection

With the smooth development of reform and opening up,the Chinese economy is like a fast train running on the road of development.However,under the market-oriented economic system,with the increasing competition,private enterprises have encountered various challenges in the process of development and growth,which has caused many problems for private enterprises.Among these problems,more serious and prominent is the lack of attractiveness for talents.The main reason for the lack of attractiveness for talents is that the development prospects of private enterprises are full of unknowns,and outstanding talents are reluctant to link their bright future with private enterprises.In modern enterprises,core talents are the first production factor,which is the vitality and competitiveness of enterprises.Therefore,how to effectively attract and retain talents in the various life cycles of private enterprise development and ensure the continuous development and growth of private enterprises has become an urgent problem to be solved.In the various life cycles of enterprise development,Huawei has effectively implemented different modes of equity incentives,and the company's development,which is well promoted,is worthy of reference and learned by private enterprises.Therefore,this paper selects Huawei as a case company,analyzes the equity incentive model selected by Huawei in each cycle of enterprise life,and discusses the possible problems of Huawei's implementation of equity incentives,in order to provide the reference for the majority of private enterprises.This paper takes case analysis as the main research method,and selects Huawei as the case company to study the equity incentive selection of Huawei in various life cycles of enterprise development.Firstly,based on the enterprise life cycle theory,Huawei's enterprise life cycle is specifically divided.Secondly,it analyzes the background,motivation,content and effect of Huawei's equity incentive model selection in each life cycle of the enterprise.Analyze the problems that Huawei may have in implementing equity incentives.Thirdly,the implications for Huawei's case are from the success and the inadequacies of equity incentives for Huawei;Finally,summarize the research conclusions of this paper,pointing out the innovations and shortcomings of this paper.Through the case study of Huawei,it was found that Huawei's equity incentive model selected in each life cycle of Huawei effectively enhanced Huawei's human capital,which helped Huawei to cope with and solve the crisis and promote the company.It is worth the vast number of private enterprises' while to learn from Huawei's development.Therefore,this paper puts forward the following suggestions: For the private enterprises in the initial stage,they can follow the example of Huawei's implementation of the employee stock ownership plan,but the top-level design of the incentive policy should be done to avoid the irrational design of the equity plan;Enterprises can implement the stock option system to solve the capital needs in the process of enterprise development,but it is necessary to stipulate the upper limit of employee stockholding,and plan ahead how to recover the stock options accumulated by employees,so as to avoid the unfairness of new and old employees;Private enterprises that have entered the mature stage can choose the TUP plan as the equity incentive model,but they should also pay attention to solving the excessive financial burden of the enterprise.