Research On ZTE's Implementation Of Equity Incentives

Equity incentive is a kind of long-term incentive mechanism.By granting appropriate shares to the management and core technical staff,the enterprise can make them closely connected with the interests of shareholders,share risks,and try to alleviate the principal-agent problem caused by the separation of ownership and management rights.Nowadays,equity incentive has been relatively mature in foreign countries and achieved significant implementation effect.With the promulgation and implementation of the measures for the administration of equity incentive of listed companies(Trial Implementation)and the measures for the implementation of equity incentive of state-owned holding listed companies(domestic)in China,it shows that the equity incentive of Listed Companies in China has begun to be institutionalized and increasingly improved.Nowadays,information technology enterprises have been expanding rapidly all over the world.They play an important role in social progress,scientific research and innovation,and economic development.However,in China's information technology enterprises,the loss of human resources is common.Therefore,in order to attract and retain management talents and outstanding R&D technical personnel,it is necessary for information technology enterprises to change their traditional salary model and create a set of reasonable and effective new salary system and system to motivate management talents and core technical personnel.Therefore,this paper takes the information technology enterprises of our country as the research object,and studies the equity incentive mode and operation mechanism,in order to provide reference for the information technology enterprises of our country to establish effective incentive mechanism.Chinese style.This paper reviews and sorts out the relevant research literature at home and abroad,based on human capital theory,principal-agent theory and incentive theory,taking ZTE as an example,and taking case analysis as the main research method,analyzes the design and implementation of equity incentive mode and operation mechanism of ZTE.The results show that the implementation of equity incentive mechanism helps to improve the company's performance,but because ZTE's equity incentive scheme has some problems such as improper choice of incentive methods and simple exercise conditions,the role of equity incentive mechanism has not been fully played.Based on this,this paper puts forward some suggestions.On this basis,it further summarizes the Enlightenment from the analysis and research of this paper,which can be used as a reference for other information technology enterprises to implement the equity incentive mechanism.Chinese style.The following is a summary of the main contents of this paper:The first part is the introduction part,which mainly puts forward the research background,research significance,main research contents,research methods,research ideas and innovation points.The second part introduces the overview of equity incentive theory and literature review at home and abroad.The third part is the case analysis.It analyzes the general situation of ZTE's development,introduces ZTE's equity incentive plan,compares the three equity incentive plans and the implementation process,and analyzes the implementation effect of ZTE's equity incentive.The fourth part analyzes the problems in the implementation of ZTE's equity incentive.The fifth part puts forward relevant countermeasures to improve the equity incentive plan.The sixth part is the conclusion and prospect,summarizing the implementation of ZTE's equity incentive.The feature and innovation of this paper is to use case analysis to study the course of ZTE's equity incentive.In the current research cases,many of them are based on the enterprise as a whole to study the impact of the first phase equity incentive on the company's financial performance.These studies are one-sided,without targeted analysis of the characteristics,and have limited practical application value.In order to avoid this situation,this paper implements different equity incentive strategies for ZTE in different stages of equity incentive analysis,and studies and compares the changes of financial performance and non-financial performance of the company after implementation.In this way,we hope to better improve the effectiveness of other information technology enterprises in implementing equity incentive programs.