Research On The Implementation Efect Of Equity Incentive In H Company

Equity incentive is a means for enterprises to solve the principal-agent problem,stimulate the management to maximize enterprise value and improve corporate governance.In 2016,China issued a new equity incentive management method for listed companies and revised it in 2018,creating a good external environment for the implementation of equity incentive in Chinese enterprises.At present,China is still improving the equity incentive system to improve the "golden handcuffs" for core talents.In 2018,with the rapid development of China’s optical communication market,5G has undoubtedly become the hottest keyword in the whole industry.The 19 th national congress of the communist party of China(CPC)put forward that it is the historical responsibility of the information and communication industry to build an innovation-oriented country,a strong cyber country,a digital China and a smart society.At present,China has built the largest and most technologically advanced 4G network in the world.The era of 5G for the Internet of everything is approaching,and the global informatization has been fully penetrated.In the face of the complex and changing industrial development trend and the evolution of application demand,the investment in the cultivation and retention of core talents is crucial to the cultivation of independent innovation ability.The communication equipment manufacturing industry also belongs to the high-tech industry.The implementation of the equity incentive plan is of great significance for the optical communication industry to improve the ability of core talents and build an employee team that can adapt to 5G,internationalization and high-quality operation.This study takes H company as the sample object.Firstly,the research background and significance of this paper are discussed,and the relevant theoretical basis and concepts of equity incentive are introduced.Secondly,the equity incentive plan of H company is introduced,and the internal and external environment and current situation of the industry development are analyzed.Furthermore,the specific contents of the three equity incentive schemes are introduced respectively,and the motivation for the introduction of equity incentive schemes is discussed.The implementation effects of the three equityincentive schemes of H company are vertically compared from the perspectives of financial performance,r&d and innovation,employee performance,corporate cash flow and market performance.It is found that the performance indicators of the first two equity incentive plans of H company have been achieved,and the results of the third equity incentive plan still need continuous attention.From the perspective of corporate financial indicators,the first two equity incentive plans promoted the significant improvement of profitability and development ability,but the solvency and operation ability remained relatively stable.From the perspective of r&d and innovation,H company pays more and more attention to the improvement of technological r&d ability and the quality of employees.From the perspective of employee performance,during the first two periods of equity incentive,employee personal performance was well completed,employee loyalty was improved,and the turnover rate decreased.From the perspective of corporate cash flow,H company has both risks and opportunities.From the market performance,the second phase of the equity incentive effect is better than the first phase.The analysis of the enterprises in the implementation of equity incentive plan,there are some problems in the process of and from the perspective of internal and external,problems existing in the targeted optimization Suggestions,including internal optimization,establish a multi-dimensional performance indicators,improve the rationality of the level set performance indicators,reasonable incentive object scope and incentive strength,the reasonable incentive validity,and continue to improve the ability of companies to develop innovative,etc.In terms of external implementation guarantee,this paper expounds two aspects: perfecting supervision and restriction mechanism,perfecting legal system and perfecting capital market.Finally,this study points out the research direction of the implementation effect of equity incentive plan in the optical communication industry,hoping to provide experience for companies considering the implementation of equity incentive plan.