The Influence Of Equity Incentive On The Growth Of Enterprises In The Communication Industry

As a measure to reduce the principal-agent cost,equity incentive can connect the interests of managers with the development of enterprises,and appropriate equity incentive can also play an incentive role in research and development,improve the overall innovation ability of enterprises,form the core competitiveness of enterprises,and help enterprises continue to grow.However,the setting of equity incentive,from the choice of the way to the choice of incentive objects,exercise conditions,etc.,will play a vital role in the overall incentive effect.With the rapid development of 5G industry,the communication industry has ushered in a new era of reform and growth.Therefore,this paper analyzes the influence of equity incentive on the growth of enterprises in the communication industry by taking FiberHome,a leading enterprise in the optical communication industry,as an example for the communication industry with promising development prospects in the future,and attempts to provide ideas for the design of equity incentive in the communication industry in the future.This paper first expounds the background of the case and the significance of the study,and introduces the overall thinking and innovation points of this paper.After that,relevant theories and literature on equity incentive and enterprise growth were reviewed,and the current development situation of the communication industry and the implementation of equity incentive in the industry were briefly introduced.Then,the case company FiberHome was introduced.After introducing the situation of the enterprise and various stock incentive schemes,this paper compares the scheme design in three aspects and analyzes the influence of stock incentive on the growth of the enterprise from three perspectives.Then this paper introduces no equity incentive case of horizontal comparison DaTang telecom.The growth index of FiberHome is compared with the industry level and horizontal cases.Finally,this paper summarizes the above research and puts forward suggestions on the companies and the environment to further enhance the growth of communication enterprises.