Deregulation Of The Science And Technology Innovation Board System And The Effect Of Corporate Equity Incentive

Originated from the United States,equity incentive gradually shows its advantages in improving enterprise performance and reducing agency cost over recent years.This paper focuses on the Board of Science and Technology Innovation.Since innovativeness appear in the equity incentive system,it's worth exploring how companies make best use of the system to design their own equity incentive scheme.This paper collects the incentive plans disclosed by companies in The Science and Technology Innovation Board before December 2020.It is worth noting that some enterprises bring in the innovation index into incentive plans,and that fit for the characteristics of high-tech enterprises.Since the board was set up in June 2019,most of the companies in this board have not implemented the equity incentive in such short time.It's difficult to make an empirical research,so that a representative case of the company research is particularly important.Taking Espressif as an example,this paper tries to find the way to make suitable incentive scheme under the background of new equity incentive system.What's more,it's needed to analyze which effect the equity incentive will bring to the enterprise.First,it introduces the present condition of Espressif,and the motivation why they take equity incentive.The result includes unifying different parties' interests,attracting high-level personnel,and decresing the impact of agency conflict.Second,it generalizes the specific plan of equity incentive made by Espressif.For the reason that the incentive time interval is short,so only the first batch of shares have been unlocked so far.Third,the effect of equity incentive is analyzed from three parts,here are the results:After taking equity incentive,the market value of Espressif rises and the market response goes pretty.As for profit and debt-paying ability,these indicators of Espressif act great,and the operating ability does not changed obviously compared with the industry.In non-financial index,the agency cost of the enterprise has decreased.The R & D input-output performes well,and the number of correlating staff expands rapidly.In the meanwhile,management turnover decreases a lot.Finally,it points out the advantages and disadvantages of plans above.Instructive points are mainly manifested in the wide range of incentive objects,the innovation of incentive methods,the strict conditions and the breakthrough of price terms.While the deficiencies lie in the low number of grants,the single performance appraisal indicators and that some programmes have incentives for the welfare of senior executives.The innovations mainly conclude:(1)This paper pays attention to the deregulation of the system of The Science and Technology Innovation Board.The deregulation of equity incentive system aim at giving the enterprises more space of choice and flexibility.Seldom would a reference notice the relatively loose system background,no need to mention the differences between companies from exsiting boards after taking the equity incentive.(2)This paper can be a supplement of this new board.Since the board was just founded in June 2019,only few articles would notice this field.And this field lacks of empirical or case research on equity incentive.(3)This paper mainly shows off the experience of implementing equity incentive of Espressif.As is known that Espressif has the characteristics of hard&core science and technology,it can be used for reference by other familiar enterprises.