Hikvision Group Equity Incentive Motivation And Effect Research

Equity incentive is a new type of incentive model that flourishes under the modern principal-agent business model and background.Equity incentive is to grant incentives to the motivated object by granting the motivated object a certain amount and proportion of company's stocks,options and other forms of securities assets.Due to the low ownership cost and long incentive time of equity incentives.In practice,many companies have begun to use equity incentives to motivate employees.However,after the implementation of equity incentives,whether the company can achieve its intended purpose and allow core talents to work for the company for a long time,thereby creating greater enterprise benefits has become the focus of enterprises and even regulatory agencies.Therefore,it is of practical significance to study whether equity incentives can retain core talents and improve the performance level of enterprises.Based on the principal-agent theory,incentive theory and human capital theory,this article uses the method of case study and takes Hikvision as the case study object.It analyzes the motivation of Hikvision to implement equity incentive four times,and summarizes the equity The impact of incentives on Hikvision's financial performance and non-financial performance.Through analysis,it summarizes relevant pertinent revelations,with a view to providing reference for companies intending to implement the equity incentive plan.Through the analysis of Hikvision classic cases,it can be shown that the Hikvision four equity incentive plan is the result of the joint drive of changes in the industry's competitive situation,national policy guidance,and internal human resources construction.For the construction of human resources,enterprises have established a long-term incentive mechanism to form performance bundling,and implemented four equity incentives under the promotion of relevant policies.In addition,Hikvision's equity incentives have achieved good results.In terms of financial performance,corporate financial performance indicators are generally better;in terms of non-financial indicators,the turnover rate of incentive objects is reduced,the overall quality of corporate employees is improved,and the competitiveness of enterprises is improved;in terms of market response,the impact of equity incentives on stock prices in the short term Limited,but has a positive effect on long-term stock price movements.The case study in this article helps to a certain extent to enhance the practical understanding of equity incentives,and provides some inspiration and reference for companies willing to implement equity incentive plans.