Research On The Problems And Optimization Of IFLYTEK's Equity Incentive

The separation of management right and ownership is a typical feature of modern enterprises.This separation mechanism can help enterprises to operate more professionally,but it also produces principal-agent contradiction.In order to alleviate this kind of contradiction,enterprises adopt various incentive means to managers,among which equity incentive plan is one of them.In recent years,the laws and regulations related to equity incentive have been issued continuously,which provides a more perfect legal basis for the implementation of equity incentive in China's listed companies.More and more listed companies begin to launch their own equity incentive plans.However,in the process of implementing equity incentive,many enterprises lack of evaluation on the effectiveness of the incentive plan,which leads to the failure of the plan.This paper studies the equity incentive plan implemented by iFLYTEK in the way of literature review and case study,and draws the following conclusion: after iFLYTEK implemented the equity incentive plan,the business situation of the enterprise has not been significantly improved.The innovation performance is only improved in the first equity incentive plan,but has no obvious effect in the second equity incentive plan;the financial performance is declining in the two equity incentive plans,and the profitability and growth ability are weakened.Then,this paper analyzes iFLYTEK's equity incentive plan from the perspective of contract elements,and finds that there are some problems in its plan design,such as imbalance of incentive object proportion,single incentive mode,mismatch between index setting and strategy,and short assessment period.Finally,based on the problems found,this paper proposes to expand the scope of incentive objects,adopt the mixed incentive mode,establish comprehensive exercise conditions,improve the dynamic exercise price mechanism and appropriately extend the incentive period to improve the incentive program of the company,and at the same time,it proposes to strengthen the supervision and management of equity incentive,increase the disclosure of equity incentive and improve the corporate governance structure to ensure that The equity incentive plan was successfully implemented.The possible contributions of this paper are as follows:(1)to evaluate the effectiveness of the equity incentive plan implemented by iFLYTEK and optimize the plan,so that the equity incentive mechanism can better promote the long-term development of the company.(2)IFLYTEK is a high-tech enterprise with intelligent voice technology services as its main business,which is representative in the industry.The research on the equity incentive plan of iFLYTEK can provide reference for other high-tech enterprises in the implementation of equity incentive plan.