Research On The Relationship Between Core Personnel Stock Incentives And Operating Performance

The core human capital of an enterprise includes employees in the positions of enterprise management,research and development and other businesses.Most of the profits and values of an enterprise are created by the core human capital,which is the fundamental factor affecting the core competitiveness of the enterprise.Under the background of globalization,the competitiveness pressure is constantly strengthened,which also promotes the demand of enterprises for innovation and quality improvement,and thus stimulates the competition for the core human capital of enterprises.In this context,enterprises are more active in exploring the incentive issue of core human capital,because it can attract and pool more innovative talents and improve the competitiveness of their products and business performance.However,it is an inevitable trend to give core employees the right to claim the residual value of the company.In the existing literature,relevant scholars have reached the conclusion that the management equity incentive and the core personnel equity incentive have an impact on the business performance of enterprises,so it is necessary for this paper to study how the core personnel equity incentive affects the business performance of enterprises.This paper uses literature review method and case method,the review of existing literature on the basis of equity incentive and firm's performance,the selection of ZTE as a case study,based on life cycle theory of ZTE,analyses in detail three equity incentive plan,and will be on equity incentive and performance of the enterprise management of core staff relations as the foothold of this paper.Based on the dynamic perspective of life cycle,ZTE chooses the stock option model in the growth period and the restricted stock model in the maturity period,with the incentive period of five years.The target of equity incentive is thecore personnel,namely the employees in the management,technical personnel,marketing and other key positions,and the incentive scope is wide.Equity incentive alleviates the principal-agent conflict of the company,promotes the increase of R&D investment by the management,stimulates the innovation ability of the R&D staff,and helps the company retain talents.This paper mainly draws two conclusions: first,the equity incentive of core personnel is related to the business performance of enterprises.In the case study,the indicators of business performance all show a changing trend after the implementation of three equity incentive schemes.Second,the equity incentive of core personnel has a positive impact on the business performance of enterprises.ZTE chose to implement three equity incentives for core personnel under the three historical backgrounds of 3G,4G and 5G development,which not only enhanced its own industry competitiveness and anti-risk capability,but also promoted the development of the entire communication industry.The revealing of the process of the equity incentive of core personnel on the operation performance of enterprises is conducive to strengthening readers' understanding and understanding of this mechanism,and it also has certain reference and enlightening significance for similar enterprises to implement the equity incentive of core personnel.