Research On Equity Incentive Plan And Implementation Effect Of Software And Information Technology Service Industry

In recent years,with the in-depth implementation and implementation of national policies,5G,big data,artificial intelligence,cloud computing and other new generation of information technologies will gradually infiltrate into the national economy and various areas of life.With the strong support of national policies,China's software and information technology service industry has a good development trend,the industry scale has been further expanded,and the industry development has entered the critical window period of integration and innovation,so the companies in the industry have an urgent need for technical talents.How to attract and retain talent becomes one of the important factors to be considered in the development of enterprise strategy.Today,with the continuous improvement of modern enterprise system,equity incentive has become an important long-term incentive method.After the implementation of the new equity incentive regulation in 2016,the enthusiasm of listed companies to implement equity incentive increased,but not all of them achieved good results.The implementation effect of equity incentive is subject to many specific factors,which reflects the obvious complexity characteristics,and enterprises cannot copy mechanically when using it.This paper mainly studies the listed companies of software and information technology service industry,and the research method is case study.Firstly,the paper analyzes the overall characteristics of equity incentive and the current situation of scheme design of all listed companies in the industry.Iflytek co.,LTD.,a typical iflytek co.,ltd.was selected as the case company.Iflytek co.,ltd.implemented three phases of the equity incentive plan,and the second phase ended in failure.This paper analyzes the internal and external influencing factors from the three aspects of industry background,corporate governance and corporate characteristics,and explores the rationality of the element setting of equity incentive scheme contract.In terms of the study of implementation effect,the entropy method is used to construct the comprehensive evaluation index,and the efficacy coefficient method is used to compare the financial performance of iflytek with that of other companies in the same industry that have not implemented equity incentive,so as to exclude the interference of other factors to the performance study.Vertically,the implementation effect of iflytek's equity incentive is analyzed from three aspects: business performance,r&d innovation and talent retention.Through the research,it is found that the higher coverage and more times of equity incentive in software and information technology service industry are due to the high dependence on core talents and the stronger incentive to implement equity incentive.For iflytek,the first phase of equity incentive has the most significant effect on performance improvement;In the second phase,the operating performance declined because the exercise period was not up to the standard;The third phase has improved the performance,but the effect is not significant.In addition,the equity incentive effect of iflytek in the first two years of the performance appraisal period has a significant effect on the improvement of financial indicators,but the long-term effect is difficult to maintain.The reason why the implementation effect of equity incentive is so different is that there are some differences in the design of the elements of the equity incentive contract in the three stages,and the improper setting of performance assessment indicators is the most important factor that leads to the poor implementation effect of equity incentive.The formulation of equity incentive plan should not be separated from the industry background and the company's development strategy,comprehensive consideration of the enterprise's own situation,to choose the right time to launch a good implementation effect.Based on the research path of "influencing factors-contract elements-implementation effect",this paper proposes the existing problems and solutions in the design of the equity incentive scheme of the case company,hoping to provide some reference for enterprises in the software and information technology industry in the implementation of equity incentive,and formulate a more scientific and reasonable equity incentive plan.