The Study On Fiber Home's Equity Incentives

Equity incentive refers to the long-term incentive of enterprises to senior executive and key technical personnel.The implementation of equity incentive can improve the company's governance structure,reduce agency costs and better motivate the management to create value for shareholders.In 2016,a series of laws and policies related to equity incentive were issued,further standardizing the formulation of equity incentive policies for Chinese listed companies,and creating a favorable policy environment for Chinese listed companies to implement equity incentive more widely.Communication technology has developed rapidly in the past few decades.Some leading domestic enterprises have made use of the accumulation of scale to increase R&D investment,actively promoting the development of this industry and narrowing the technological gap between domestic enterprises and international enterprises.Communication equipment industry is highly dependent on technology.The implementation of equity incentive plan is of great significance for the key talents in communication equipment industry.This paper starts with the implementation background,scheme design,market performance and financial performance of the company during the implementation period,and analyzes the purpose of equity incentive scheme design and the advantages and disadvantages of the scheme based on the theoretical research related to equity incentive.Through the comparative analysis of three equity incentive schemes and the company's market performance and financial performance,the following conclusions are drawn: equity incentive can be divided into partial incentive and partial reward;The design of the core index of the incentive plan affects the performance of the enterprise during the incentive period.The incentive plan should match the situation of the enterprise.The implementation time of equity incentive plan should be very close continuity.The complexity of assessment indicators should be carefully selected.In view of the problems found in the analysis process,this paper puts forward the following suggestions to the listed companies in China's A-share market: equity incentive should adapt to the internal and external objective environment of the enterprises;When designing the evaluation requirement of equity incentive,enterprises should consider the complexity of the index.Companies should be vigilant against excessive concentration of control.