Analysis Of Implementation Effect Of Restricted Stock Equaity Incentive In High-tech Enterprises

With the transformation of economic growth mode,high-tech enterprises have become an important force to promote the high-quality development of Chinese economy.At the same time,China has also introduced and improved relevant policies to support high-tech enterprises.It is hoped that high-tech enterprises can drive the transformation and upgrading of more traditional enterprises and promote the sustainable development of the economy.High-tech enterprises have the characteristics of high innovation,high cost,and high risk,their core competitiveness depends on the construction of excellent talent teams and the full display of their innovative capabilities.In order to effectively alleviate the agency problem caused by the separation of the two powers of modern enterprises,reduce brain drain,and enhance the core competitiveness of enterprises,high-tech enterprises have begun to implement equity incentive plans to supplement and improve their existing talent restraint and incentive systems.China started to implement equity incentives later than other counties.Compared with western developed countries,the policy system and academic research related to equity incentives still need to be further improved.In August 2016,the equity incentive business of listed companies in my country has developed vigorously with the implementation of the "Administrative Measures for Equity Incentives for Listed Companies",which makes more and more companies begin to pay attention to the formulation of long-term incentive mechanisms.There are many models of equity incentive plans,most Chinese listd companies choose stock options and restricted stocks.For high-tech companies,restricted stocks are the most commonly used method,because on the one hand,companies grant restricted stocks to incentive objects,making them become shareholders,binding the incentive objects to the interests of the enterprise.Incentive objects can also reduce the short-sighted behavior,stand in the position of shareholders to make decisions that are conductive to the long-term development of the company;On the other hand,as a long-term incentive mechanism,restricted stock equity incentives can set assessment targets to make up for the traditional insufficiency of the salary structure,and mobilize incentive objects’ working enthusiasm,improve work efficiency,and create more value.In the case part,this article selects one of the leading companies in the field of lithium ion batteries-Sunwoda Electronics Co.,Ltd.Firstly,it explains the company’s situation,operating status,equity structure and personnel structure.Secondly,it analyzes the motivation of Sunwoda’s implementation of equity incentives and the scheme of equity incentives.It evaluates the implementation effect of its equity incentives from three aspects:financial performance,innovation performance,and attracting and retaining talents.The findings of this article are as follows:Sunwoda’s implementation of restricted stock equity incentive plan has a certain role in promoting financial performance in the short term,but the long-term incentive effect is not good.From the perspective of corporate innovation performance,no matter whether it is capital investment or personnel investment,there has been a significant improvement in effect.However,the implementation of the restricted stock equity incentive plan failed to achieve the effect of retaining talents.During the implementation of the plan,there was a lot of loss of personnel.Research believes that if companies want to achieve long-term incentive effects by formulating equity incentive plans,they need to formulate appropriate equity incentive plans based on their specific conditions.At the same time,the scope of incentives should be appropriately expanded,and a variety of incentive methods should be adopted for different incentive objects.And according to the company’s long-term strategic plan,select appropriate financial indicators and non-financial indicators to comprehensively evaluate the incentive objects.The contribution of this article is:first,most of the existing literature on equity incentives uses empirical research methods,this article supplements case studies in the field of equity incentives;secondly,this article starts with Sunwoda’s two restricted stock equity incentive plans to analyze companies The reasons for the implementation of equity incentives and implementation effects;finally,rational use of financial indicators and non-financial indicators to evaluate the effects of equity incentives.It provides a reference for the evaluation system of equity incentive effects of high-tech enterprises in my country.At the same time,combining Sunwoda’s shortcomings in implementing restricted stock equity incentives and the industry characteristics of high-tech enterprises,relevant suggestions are put forward,hoping to provide some reference for other high-tech enterprises in the same industry when implementing equity incentive plans.