A Comparative Study On The Implementation Effect Of Equity Incentive In High-tech Enterprises

As a long-term incentive mechanism,equity incentive has the advantages of strong operability and high efficiency,which makes it recognized by many enterprises and is widely used in the world.Since 2011,our country every year,more than 100 companies released its equity incentive plan,by 2016 is as high as 257,suggests that many listed companies have through the equity incentive to promote the development of the company will,however,some companies in the process of the implementation of equity incentive plan,because plan set unreasonable and the way to stop,even some of the equity incentive plan of the enterprise also didn't start "abortion",even finish the equity incentive plan implementation of enterprise,the results obtained are also different,the causes of this phenomenon requires us to further study.Therefore,this paper will conduct an in-depth analysis of two companies(Hikvision and Huawei)from the perspective of equity incentive,hoping to provide some references for the implementation of equity incentive in high-tech enterprises in China.Huawei and Hikvision are both representatives of high-tech enterprises,and their equity incentive schemes are relatively successful cases in the industry.Moreover,since Hikvision is a listed company while Huawei is a non-listed company,the design of equity incentive schemes is quite different,and the implementation effect is also different.This paper,as a research object,adopts case analysis method,comparative analysis method and other relevant theories to analyze the implementation effects and differences of equity incentive of two different types of enterprises in the same industry from multiple dimensions such as financial performance,market effect and innovation ability.Based on the background of the two companies' past implementation of equity incentive,this paper firstly introduces their respective schemes,and then analyzes their respective implementation effects from multiple aspects by comparative analysis.Finally,the differences in implementation effects and the reasons were expanded and analyzed,and the main reasons were found out: the stock ownership incentive model was single,the neglect of the physical and mental health of employees,and the limitations of unlocking conditions.Through the above research,this paper draws the following conclusions: whether listed or non-listed companies,as long as the rational design of equity incentive plan can motivate employees,attract,train and retain technical talents,thus driving the improvement of corporate performance and promoting the company's future development and growth.But the different scheme design,will produce the different effect difference.By finding some problems in the design of different equity incentive schemes,this paper appropriately provides some targeted suggestions,hoping to provide reference and reference for the equity incentive schemes of high-tech enterprises in China,and provide valuable exploration for the further research of equity incentive schemes in China in the future.