Analysis Of The Impact Of Equity Incentive On Innovation Performance Of Dahua Technology

The report of the 19 th National Congress pointed out that China's economic development has entered a new era.Innovation is the core strategic task that leads the country's overall development and is also the first driving force to promote continuous improvement and enhance its core competitiveness.In the modern company-made enterprises,the problem of principal-agent problems,operators in order to maximize their own interests,often have a negative attitude towards high-input,high-risk and long-term innovation activities.At the same time,the loss of core personnel and the decline in work enthusiasm will greatly affect the smooth progress of innovation activities.In the long run,it will affect the formation and improvement of enterprise innovation capability,which is not conducive to the sustainable development of enterprises.Equity incentives can effectively alleviate agency conflicts,but how to design a reasonable incentive plan to encourage executives and core technicians to achieve more effective conversion of innovation performance is still an urgent problem to be solved.This paper takes the two-phase equity incentive plan of the leading private enterprise Dahua Technology in the security industry as the research object,and establishes the innovation performance evaluation system to evaluate the corresponding indicators of the three stages of investment,transformation and income generation in the innovation activities before and after the implementation of the two-phase equity incentives.The conclusions reached are as follows: In general,the innovation performance of the second phase of the program is better.First,when the exercise conditions are the compound growth rate of operating income rather than the absolute index of net profit,the executives' awareness of innovation is enhanced and they are more enthusiastic about innovation investment.Second,when the incentives of core technicians are intensified,innovations such as patents and new products that are ultimately transformed will also increase.Third,the improvement of innovation capability not only enables enterprises to rapidly increase their operating income,brand awareness and market share,but also significantly promotes the long-term value of the company.The research in this paper shows that different incentive targets need to set different job evaluation indicators,and set the effective period of equity incentives according to the life cycle of enterprises,appropriately increase the incentives for core technical personnel,and pay attention to the reasonable performance of granting prices to make equity incentives more effective.Promote the transformation of innovation performance and give full play to the innovation-oriented role of equity incentives.