Research On The Impact Of Equity Incentive On Enterprise Innovation Of Company X Based On Life Cycle

Since the convening of the 19 th National Congress of the Communist Party of China,the status of innovation has improved significantly,and the construction of a modern economic system is inseparable from the important role of innovation.In recent years,domestic high-tech enterprises have been focusing on the development of innovative work,and high-tech industries have become an important force to promote national economic growth.As an important carrier of scientific and technological innovation,high-tech enterprises can enhance their innovation ability,which can effectively connect technological innovation with market demand.As a national key high-tech enterprise,Company X needs reasonable salary incentives to improve competitiveness and ease agency conflicts,in order to attract and retain talents,enhance its innovation ability,and maintain core technological advantages.Therefore,constructing a reasonable and effective incentive mechanism in an enterprise is the key to influencing its innovation ability.Based on this situation,this paper believes that the research on equity incentives is of practical significance to effectively improve the innovation ability of enterprises.This article studies the company's three-phase equity incentive plan,introduces life cycle theory,and analyzes the implementation of company X's three-phase equity incentive.It was found that Company X chose different equity incentive models according to the different stages of its life cycle,the equity incentive model in the growth period was stock option incentive,and the equity incentive in mature period was the restricted stock incentive model.First,in order to evaluate the impact of company X's different life cycle equity incentive plans on corporate innovation,this paper selects indicators from three aspects of market performance,financial performance and R&D performance,and creates an innovation performance index evaluation system for this study.Secondly,based on the constructed index evaluation system,after analyzing the impact of company X's different life cycle equity incentives on innovation,it was found that company X's equity incentives in different life cycle stages played a role in promoting,and the choice of equity incentive model has its own reasons and basis.Finally,through this research,it can be found that in terms of promoting enterpriseinnovation,growth-stage enterprises have better incentives through the stock option model.For mature enterprises,they should choose the restricted stock model.Not only that,companies should choose the appropriate equity incentive model and set up an effective incentive plan based on their own life cycle stages,and at the same time strengthen the innovation-oriented role of equity incentives.