The Research On Equity Incentive Program Of High-tech Enterprise H

Since the 20 th century,with the rapid development of high-tech enterprises in China and abroad,the separation of ownership and management has become the consensus of modern enterprises,with the application of equity incentives becoming increasingly widespread.Through the implementation of equity incentives,the owners and operators of enterprises form a community of interests,stimulating the working enthusiasm of senior managerial personnel and employees,facilitating enterprises to improve multi-dimensionally in business performance,innovation capability,and attraction for talents,and ensuring healthy and sustainable development of enterprises.A typical example among the successful cases is the equity incentives scheme of H as a high-tech enterprise.In just over 30 years of development,Company H,facilitated by the implementation of the equity incentives scheme,has become a top-notch company in the telecommunications equipment manufacturing industry in China and even the world.This paper takes as a case study the equity incentives scheme of H as a high-tech enterprise.It adopts a research method incorporating literature review and quantitative analysis to analyze the case.Firstly,it reviews the relevant research results of scholars from China and abroad on equity incentives,and gives an overview of the concept of high-tech enterprises,the concept of equity incentives,the agency theory,the incentive theory,and other relevant theories.Secondly,it introduces the profile of Company H and its developmental history of the equity incentives scheme.Besides,it focuses on the background of the implementation of the current TUP scheme and the characteristics and the shortcomings of the scheme;Then,it analyzes three aspects of Company H’s business performance,R&D and innovation capabilities,and personnel composition over the past 10 years,so as to judge the implementation effects of the scheme.Finally,it summarizes the successful experience of the equity incentives scheme of Company H to provide inspiration for the implementation of the equity incentives schemes of high-tech enterprises in China.