Jinzhi Technology's Equity Incentive Motivation And Performance Analysis

In the national economic environment,the demographic dividend weakened,the mode of economic growth gradually transformed,the driving force of development is shifting towards innovation,and the focus of modern corporate governance also shifted to value creation.The company’s demand for labor changed to the demand for talent,especially High-tech industry companies are more pressing to improve their core competitiveness.Companies must emphasis the talent to innovate and master the initiative in the development of science and technology so that they can stand out in the industry and the market,then achieve the goal of long-term development.Therefore,retaining and motivating talents has become one of the company’s important systems.Equity incentive is considered to be the most effective incentive system innovation in modern enterprise theory.Since 2006,China has formulated and announced a series of policies on equity incentives.Domestic companies have begun to try equity incentive plans to motivate talents for corporate development and the corporate culture.The Wiscom is a high-tech company with rapid development and intense competition.Its entrepreneurial team is composed of technical experts in computer and power specialization of Southeast University.Since the establishment of the company,it has determined the path of independent innovation in the areas of power automation,power information,and university information.The company was listed on the Shenzhen Stock Exchange in 2006 and has achieved a solid status as a leading provider of power grid automation.However,the company experienced major adjustments in its main business,and the thermal power equipment-based power automation project was affected by the national policy,and its development potential was insufficient.In the IT business,it was gradually preparing to abandon university information,the business sector shrank,and the importent business operations had gradually changed.As a high-tech enterprise,talent demand and talent stability are very important to Wiscom.In order to encourage technological innovation within the company and support R&D investment,Wiscom has made many efforts in attracting and retaining talents.Under the company’s internal needs,the company implemented equity incentive plan by stock option incentive manner in 2013,then achieved a good result.This paper focuses on the analysis ofthe motivation of Wiscom Science and Technology Co.,Ltd.through the SWOT analysis method.Using the Event Analysis Method,the Efficiency Coefficient Method and the EVA index analysis method to conduct a qualitative and quantitative analysis of the company’s performance changes after the implementation of equity incentives.It proved that the equity incentive had a positive impact on Wiscom’s performance and strengthened the argument that equity incentives affect corporate performance.Finally,it summarizes the advantages and some proposals for optimization of the incentive plan.This is a useful reference for the same type of enterprises and provides some reference for the development of other companies.