Research On Equity Incentive Of Shanghai GQ Technology Company

Since its birth,the equity incentive system has been favored by various companies around the world.Its development history abroad is most typical and famous in the United States.It took about 50 years for the US equity incentive system to go from nothing to universal application.So far,the application rate of equity incentives in US listed companies has reached more than 90%,and its application rate among high-tech companies is higher,almost 100%.Although equity incentive has developed in China for nearly 30 years,only about 50% of listed companies in China have implemented equity incentive.With the increasingly fierce market competition,enterprises must adopt more humane and diversified incentive methods in order to attract and retain talents.Equity incentive has developed rapidly in China in recent years and has been adopted by more and more listed companies.This paper studies the equity incentive scheme design of senior managers and key employees in Shanghai GQ technology company.Shanghai GQ Technology Co.,Ltd.was established in 2003.After more than ten years of rapid development,it has now become a well-known manufacturer in the communications equipment industry worldwide,and then it implemented the employee equity incentive plan in December 2017.With the escalating trade war frictions between China and USA,the ICT industry has been increasingly impacted.Although the business growth was limited and the net profit of major competitors decreased by 80% year on year,Shanghai GQ technology company's revenue and net profit both achieved a growth of nearly 27%,which is inseparable from the equity incentive plan implemented by GQ company at the beginning of 2018.This paper adopts in-depth interview,questionnaire survey,literature research and case study.First of all,this paper conducted in-depth interviews with 55 middle and senior managers from various departments of GO technology company,collected the satisfaction of all middle and senior managers with the current incentive status of the company,and deeply understood the attitude and willingness of middle and senior managers towards the implementation of equity incentive of the company.Secondly,in order to better understand the incentive status and deficiencies of GQ technology company,this paper organized a questionnaire survey covering all levels and categories of employees within the company,and analyzed the problems existing in the incentive mechanism of GQ technology company and the necessity and urgency of implementing equity incentive.Furthermore,this article reads a large number of domestic and foreign research literature and laws and regulations on equity incentives,summarizes the current research status in the United States and China,and the respective characteristics and differences of equity incentive design between Chinese and American listed companies.Where technology companies need to avoid and learn from when designing equity incentive plans.Then,this article also studies the advantages and disadvantages of several common equity incentive models,combines the main points of initial communication with relevant personnel of GQ technology companies,and refers to the practices of other companies in the same industry at home and abroad.Analyze and study for the design of GQ technology company equity incentive plan.Finally,in combination with the operating status and future development of GQ Technology Corporation,each design element of equity incentives of GQ Technology Corporation was studied in detail,and related safeguard measures were proposed.With the continuous improvement of China's capital market,this paper is expected to provide guidance for the rationality of equity incentive scheme design and successful implementation of China's small and medium-sized listed companies.