Research On The Impact Of HC Company Equity Incentive On Firm Performance

Equity incentives began to appear in the 1950 s,and initially solved the high personal income tax problems of executives.China introduced the equity incentive system in the 1990 s to solve the problem of entrusting agents of shareholders and operators in China.Lived the core technical staff and improved the overall benefits of the company.At present,the equity incentive system already has a wealth of theoretical knowledge and practical experience.Many enterprises in China have already implemented this incentive method.With the market supervision mechanism becoming more and more perfect,the implementation of equity incentives can enhance the enthusiasm of employees,to a greater extent.Improve business returns.HC is a high-tech enterprise,suffering from the market downturn and the pressure to develop new technologies,and the number of personnel is also lost.In this situation,the company has implemented three equity incentive plans since 2013 to retain talents and improve corporate performance..This paper adopts the research methods combining theoretical research,case analysis and comparative analysis,and introduces the relevant knowledge and development status of equity incentives.Then it introduces the implementation of the enterprise incentive plan in the case,and deepens the effect of implementing incentives.The analysis selects the financial indicators that the company is very concerned about and the non-financial indicators that reflect the overall development of the company.The representative data in the financial statements is an important reference item selected in this paper,such as the net profit growth rate.At the same time,according to the needs,some financial data that are not directly disclosed by the company are calculated.In terms of non-financial indicators,the incentive object turnover rate,market share,and core competitiveness are selected to measure the effect of equity incentives.The results of these two aspects basically represent the implementation results of equity incentives.After implementing equity incentives,enterprises can compare with the implementation of domestic and foreign enterprises,and learn from other companies' experience in personnel management,incentive mode selection,evaluation index setting,and system setting.In order to make the incentive effect of equity incentives better,this paper also summarizes the conclusions about the implementation of equity incentives by HC companies,highlights the importance of correctly selecting incentive targets and the validity period of exercise rights,as well as comprehensively setting assessment indicators and selecting multiple incentives.The necessity.For other companies in China to provide reference for the implementation of equity incentives.In addition,in the business process,the assessment system should be standardized,the supervision mechanism should be strengthened,information disclosure should be improved,and a well-ordered market environment should be formed,so that enterprises can clearly define what they are in the market according to the changes of their own enterprises in an objective and transparent market environment.position.In a healthy and effective market environment,equity incentives can achieve more desirable results,thereby coordinating the relationship between shareholders and managers,and improving corporate performance.