Research On Equity Incentive Effect Of Hikvision

Equity incentive is one of the most effective ways to motivate employees nowadays,which is to grant employees the corresponding equity to form a community of interests between shareholders and employees,to make employees have the sense of ownership,and to change the goal from realizing personal interests to realizing company value and realizing personal interests.In April 2005,China began to implement the reform of non tradable shares.In 2006,China began to formally implement the measures for the management of equity incentive of listed companies.After that,with the increasing attention paid to equity incentive by the state,China formulated and issued the measures for the administration of equity incentive of listed companies,which was revised and implemented on September 15,2018.The continuous improvement of policies and regulations means that equity incentive is widely accepted in China and has entered a rapid development stage.However,it is worth noting that many enterprises now implement equity incentive plans,but not all enterprises have achieved success.Therefore,this paper takes the equity incentive plan of Hikvision as an example to analyze the case.This paper selects Hikvision as the leading enterprise in China's security industry,which enjoys a high market share in the world.Among the top 50 global security companies in2016-2018,Hikvision ranks first.This paper adopts literature research,case analysis and comparative analysis.This paper analyzes the completion and characteristics of the four equity incentive plans implemented by Hikvision,combined with financial indicators,non-financial indicators and short-term market response.The analysis results show that: from the content of the plan,Hikvision has entered a stable development stage from the initial stage of rapid growth,and pays more attention to the use of equity incentive plans to achieve welfare The goal of combining with incentives;in terms of financial indicators,the equity incentive plan of Hikvision has played a positive role in maintaining the stable development of the enterprise,improving the value of the company,improving the operation ability and profitability of the company,and its solvency and development ability have not beensignificantly improved,but the enterprise is also better than the industry average level,and the management In terms of non-financial indicators,the equity incentive plan improves the quality of the company's employees and enhances the research and development ability of the company;in terms of short-term market response,the equity incentive plan causes the positive fluctuation of short-term stock price,which is recognized by investors.Finally,through the summary of the equity incentive plan of Hikvision,it is found that although the equity incentive plan of Hikvision promotes the development of the company,it still lacks the diversity of incentive methods at the plan level,and also lacks the richness of assessment indicators.In this regard,some suggestions are put forward,hoping to expand the scope of incentive assessment indicators and strengthen shares through the enrichment of incentive methods The effect of the right incentive can help the company to improve itself and provide a case reference for the same industry enterprises to implement the equity incentive plan.