Analysis Of Skyworth Digital Restricted Stock Incentives

With the development of modern technology and the arrival of the information age,more and more information technology enterprises are growing rapidly.Human resources are the essential competitive advantage in the process of their development.Human resources mainly come from the core talents of enterprises(including managers,technological research personnel,marketing personnel and so on).In order to make the enterprises sustainable development,it is necessary to strengthen and maintain the competitive advantage of enterprises.Therefore,stabilizing core talents has become an important strategy of information technology enterprises.At present,many companies use equity incentive to stabilize the core talents of enterprises.In some western countries,equity incentive has become a mature and perfect incentive way to attract talents.For some listed companies in China,there are still many doubts about the implementation of equity incentive,so that the effect of equity incentive is not as good as that of many enterprises.At the same time,the conflict of interests between shareholders and managers caused by the separation of enterprise management right and ownership is also a corporate governance problem faced by Chinese enterprises.The equity incentive is to grant the company's internal staff a certain amount of stock when the company completes a certain performance,so that they can have the sense of ownership,and the interests of the enterprise and of managers tend to be consistent.Thus a mechanism is formed with constraints and incentives.The most essential characteristic of equity incentive is incentive function.The incentive value of equity is different from that of salary.On the one hand,equity incentive brings about continuous increment of enterprises,while salary only pays back to employees' past performance;On the other hand,in the process of equity incentive implementation,it also has the effect of restraint,which makes employees' behavior and business objectives tend to be consistent.Through reading a large number of documents,books and reports,this article was written with the relevant theoretical knowledge,laws and regulations of equity incentive,and the researcher also collates the research ideas and methods of papers;through reading the annual financial report and semi-annual financial report of Skyworth Digital case mainly carries out a comprehensive analysis of the implementation of equity incentive plan.The writing framework of this paper consists of three parts.Firstly,it explains the theoretical and practical significance of this research.Then it summarizes the research on the comparison of different equity incentive modes,the motivation and effect of equity incentive implementation at home and abroad.And it also summarizes the comparison of different equity incentive modes at home and abroad,the relevant theories of the purpose of implementing equity incentive and the effect of equity incentive cases,and summarizes the theoretical knowledge of equity incentive from two aspects of representative theory and the purpose of equity incentive.Thirdly,through reading the annual report of Skyworth Digital from 2015 to 2018 and related announcements and explanations of enterprises,this paper combs the restrictive stock scheme and implementation process,and makes full use of some theoretical knowledge published by scholars to analyze the purpose of Skyworth Digital's implementation of restrictive stock from the aspects of industry development,business strategy and governance of case enterprises.Fourthly,analyze the effect of the implementation of the limited stock incentive by Skyworth Digital,which is evaluated from the changes of the profitability,operation ability,solvency and growth ability after the implementation of Skyworth Digital,as well as the stability of employees and agency cost of enterprises.This paper takes the restricted stock incentive scheme implemented by Skyworth Digital as the case study object.Through consulting the relevant literature of equity incentive theory,combining with the research status of equity incentive mechanism at home and abroad,it uses exploratory case study method to analyze the background of the scheme,the content and purpose of incentive plan,and the paper analyzes the effects from three aspects: agency cost,employee stability and financial performance.After that the reasons are explored.Finally,some suggestions are put forward to improve the Skyworth digital restrictive stock incentive project.The main reason why the implementation of equity incentive plan fails to give full to its positive effect lies in the design of performance evaluation indicators,unlocking conditions and unlocking proportion.Fifthly,combined with the effect analysis and the limited stock incentive design scheme,this paper mainly finds its causes from four aspects: performance evaluation index,award proportion,unlocking conditions and proportion.Finally,this paper puts forward some suggestions on the causes of the restrictive stock incentive effect of Skyworth Digital.This paper hopes to help enterprises solve the difficulties in the process of operation and management,improve sales performance,enhance the loyalty of core staff to enterprises,and maintain their core advantages by studying the incentive scheme of Skyworth digital restricted stock.At the same time,the research on Skyworth Digital Restrictive Stock Incentive Scheme can also provide reference for other enterprises in the same industry.