Research On The Implementation Effect Of Huayu Software's Equity Incentive Plan

Equity incentives originated in US Pfizer in the 1950s,the initial purpose was to avoid taxes reasonably.Subsequently,many companies found that equity incentives can increase the enthusiasm of employees,so equity incentives have been favored by more and more companies.The equity incentive plan was first adopted by Chinese state-owned enterprises in the 1990s.Because of the lack of relevant regulations and policies,the implementation effect is not very satisfactory.In 2005,the China Securities Regulatory Commission promulgated the relevant management measures for equity incentives,which clearly specified the elements of equity incentives,and formed a standardized policy background in conjunction with the revised Securities Law and the Company Law.In order to further mobilize the enthusiasm of employees,attract and maintain superexcellent capable persons,and reinforce the company's competitive position in the service trades,Huayu Software has announced three-phases equity incentive plan from 2012 to 2016.Stock-right incentive plan was implemented in 2012,and restricted stock incentive plan was implemented in 2015 and 2016.Up to now,all three-phases equity incentives of Huayu Software have been implemented.The thesis uses Huayu Software as an example to study the implementation motive,implementation process and implementation effects of its equity incentives,select the financial data of Huayu Software from 2011 to 2019,and use event study,financial index analysis,efficiency coefficient and other methods.Study short-term stock price changes,non-financial indicators changes and financial indicators horizontal and vertical changes,and analyze the influence of equity incentive programs on the financial performance,employee loyalty,and innovation capabilities of Huayu Software.The study found that since the implementation of equity incentives by Arima Software,short-term stock price changes,research and development capabilities,employee stability and composition structure,agency costs,financial performance have all improved.By means of the efficiency coefficient way,it is also found that after the implementation of equity incentives,Huayu Software has steadily increased its score ranking,and has stabilized in the first place since 2014,which is better than Tianyuan Dike,which has also implemented equity incentives,and other companies that have not implemented equity incentives.It is suggested that software companies can use diversified incentive models to ensure the effect of incentives to the greatest extent.Improve the performance evaluation system and rationally use financial and non-financial indicators for evaluation.Improve the personal performance inspection system,and formulate corresponding evaluation indicators according to the work responsibilities of different employees.