Research On The Design Of Equity Incentive Of CD Software Company

The relationship between the rights and obligations of enterprises purchasing labor and workers' labor in the market is deeply influenced by the property right characteristics of human capital.It causes difficultly to reach a dynamic balance between how much labor have been purchased by enterprises and how much labor have been sold by high-quality talents in contracts,which leads to incomplete contracts between enterprises and highquality talents.Because the labor of high-quality talents,the ownership of human capital,completely belongs to the high-quality talents themselves,the high-quality talents determine the depth of development and utilization of the human capital.The enterprises which want to achieve the coordination between the cost paid by the enterprise and the labor achievements paid by the workers,need to introduce the incentive mechanism to mobilize.Equity incentive is a relatively new and effective long-term transfer mechanism in the current market with relatively controllable cost.As a long-term mechanism of business development,equity incentive has been widely implemented and enriched in most listed companies and non-listed companies.An equity incentive plan in line with the enterprise's own development goals can effectively help enterprises to solve the principal-agent problem caused by the separation of equity and management rights,well avoid the moral hazard and adverse selection problems of managers,and make managers more willing to choose to work actively and diligently to achieve the stable development of enterprise value and their own value.As we all know,the talents of software companies are basically knowledge workers and middle and top managers who master special professional skills.When enterprises establish contracts with them,they often determine specific labor costs based on comprehensive factors such as general labor conditions,industry standards and experience,but the labor paid by high-quality talents in actual work has not been further refined.They did not make a certain correlation assessment with the value they created.As a result,high-quality talents enjoy the reward in the contract no matter how much or how little they pay in the process of labor,which limits the exertion of human capital property right to a certain extent.In the absence of effective return comparable to the labor expectation,high-quality talents will generally slack off their work,leave their jobs,or even cause more losses to enterprises.In order to improve the enthusiasm,innovation and diligence of the work of high-quality talents,and to achieve the dual goals of enterprise profit and labor distribution,the author thinks that the key point of dynamic balance of the incomplete contract of employment relationship transaction between software company and high-quality talents should be studied and adjusted from the perspective of internal incentives.Therefore,From the perspective of incomplete contract,this paper studies the equity incentive problems of CD Software Company,and provides a set of effective equity incentive design scheme for CD Software Company.Focus on the policy documents such as the latest Accounting Standards No.11-share based payment in 2019,accounting standards for Business Enterprises No.7 and notice of the Ministry of Finance and the State Administration of Taxation on improving the income tax policies related to equity incentive and technology equity investment(CS[2016]No.101).At the same time,through the Oriental wealth platform to study the actual practice of equity incentive of many listed companies,and after consulting a large number of literature and excellent cases related to equity incentive,the paper summarizes the overall core idea of equity incentive design.That is to say,guided by the policy,following the basic design principles,determining the main contract elements of equity incentive according to the strategic objectives to be achieved in each stage of the enterprise,making targeted and flexible combination by using the three kinds of equity incentive modes,processes and constraints currently stipulated by the state,and making and implementing necessary performance in combination with the industry characteristics and external environmental factors of the enterprise assessment conditions,to achieve the optimal equity incentive design.Finally,using the latest tax policies of non-listed companies which are combined with five main process of the equity incentive to design equity incentive fiscal and tax operations.The innovation of research perspective is the main innovation of this paper.