Research On The Design And Effect Of Stock Incentives In Private High-tech Enterprises

In recent years,market competition is fierce,new products and technologies are advancing rapidly,innovation is the new driving force for the development of enterprises and the country,and private high-tech enterprises have recently developed rapidly as important carriers of innovation.However,during the development process,frequent R&D talent flows and R&D innovation were exposed.Insufficient investment and other issues,equity incentives,as a long-term incentive mechanism,can effectively motivate executives to increase R&D investment,make scientific investment decisions,and reduce the mobility of core employees,thereby enhancing the company’s R&D innovation ability and competitiveness,which is beneficial to Promote the long-term stable development of enterprises.This article attempts to use a case study method to combine the characteristics of private high-tech enterprises and their requirements for equity incentives,and to rationally design the six key elements of their equity incentive plans based on the three principles of difference,constraint,and long-term effectiveness.And explore the impact on economic effects.This helps our private high-tech enterprises to fully understand the key elements of the equity incentive plan and design a scientific and reasonable plan that meets the characteristics and development goals of the enterprise.Under the guidance of principal-agent theory,incentive theory and human capital theory,this paper summarizes domestic and foreign literature on the motivation,element design,and implementation effect of equity incentives;secondly,it designs and influences the equity incentive schemes of private high-tech enterprises.The analysis is based on the private high-tech enterprise of Zhongheng Electric,and analyzes the motivation for the implementation of the two phases of equity incentives in 2011 and 2014,compares the element design of the two phases of the program,and analyzes financial performance,market response,and R&D and innovation capabilities.Three aspects,as well as the company’s vertical and industry horizontal perspectives to analyze the implementation effect of its equity incentives,it is concluded that the design of Zhongheng Electric’s equity incentive scheme is more scientific and reasonable.The implementation of equity incentives can improve corporate performance and enhance corporate R&D and innovation capabilities;Finally,it proposes reasonable improvement suggestions for the problems that still exist in Zhongheng Electric’s equity incentive plan.It is hoped that the research in this article will have implications for the design of equity incentive plans for private high-tech enterprises in China.