Research On Equity Incentive Scheme And Implementation Effect Of Giga Device

Equity incentive makes managers become shareholders by granting them certain shares,so as to realize the "interest binding" between owners and managers,reduce the agency cost of enterprises,attract and retain outstanding talents,and finally achieve the purpose of sustainable development of enterprises.Equity incentive has become an indispensable management tool to improve the performance of modern enterprises,and it is a topic of common concern in business management.Although more and more enterprises have implemented the equity incentive plan,but the effects are not the same.Some equity incentive plans end in failure,while some equity incentive plans are carried out smoothly,but the final effect is far from the expected.Equity incentive is not a panacea.Scientific equity incentive scheme is the key to the successful implementation of equity incentive.Improper setting of equity incentive scheme may have defects,which will affect the effect of equity incentive.This paper aims to analyze the implementation effect of specific equity incentive cases in the form of cases,and points out the problems existing in the equity incentive scheme,and puts forward corresponding optimization suggestions for the shortcomings,hoping to provide some reference for similar enterprises to implement equity incentive.The integrated circuit industry is a national strategic industry which is mainly mentioned in China's 14 th five year plan.Talents are the core resources of such enterprises.How to attract and retain talents has become one of the problems that enterprises need to solve.This paper takes the case of Giga Device equity incentive,a leading integrated circuit design enterprise,as the research object,analyzes the implementation effect of equity incentive,and finds out the problems in the scheme And put forward the relevant optimization suggestions and safeguard measures.Firstly,on the basis of combing the relevant literature of equity incentive,according to the principal-agent theory,human capital theory and incentive theory,this paper explores how the equity incentive scheme interacts with the implementation effect;secondly,taking Giga Device as the case study object,this paper analyzes the motivation of its implementation of equity incentive plan,introduces the equity incentive scheme,and introduces the elements of the equity incentive scheme After the analysis,the paper uses case analysis and comparative analysis to analyze the implementation effect of equity incentive of Giga Device from the perspectives of financial performance,technological innovation ability,market share,human resource management,agency cost and market reaction,and points out the shortcomings of the equity incentive scheme.Then,the paper puts forward some suggestions for the shortcomings of the equity incentive scheme of Giga Device Finally,it summarizes and draws relevant conclusions,hoping to help Giga Device improve the equity incentive plan in the follow-up equity incentive plan,and give better play to the role of equity incentive.