Research On The Impact Of ZTE's Stock Option Incentive On Organizational Performance

As a relatively long-term incentive mechanism,equity incentives unify the interests of the company's managers and owners,better solve the agency relationship between the company's shareholders,managers,and core R&D personnel,and better motivate them.Enthusiasm for management and production,but does every equity incentive produce the expected results?What impact will equity incentives have on organizational performance? How to choose an equity incentive plan that is more in line with the current development of the company? And so on are worth discussing.Taking ZTE Corporation as an example,this paper compares the different effects of the company's three equity incentive plans(2006,2013,and 2017)on its organizational performance,and summarizes the advantages and disadvantages of the company's equity incentive plan,with a view to Provide a certain reference for other similar companies' equity incentive methods,objects,performance conditions and other aspects.Through combing the existing related literature,combining principal-agent theory,interval effect theory,trench digging autonomy theory and other theories,the paper puts forward corresponding hypotheses,combined with the characteristics of the three-phase equity incentive plan,using the data in the WIND database,using STATA software conducts data processing and analysis.Through research,it is found that: equity incentives have a positive impact on the organizational performance of listed companies;equity incentives have the greatest impact on the company's profitability;performance conditions are the key factor affecting the effectiveness of company equity incentives.Finally,for the design of equity incentive plans,the paper suggests that companies should actively choose appropriate equity incentive policies to improve the company's organizational performance,set reasonable performance conditions to improve incentive effects;optimize equity incentive channels and methods,such as stock options or restrictions Incentive plans for stocks,equity incentives adhere to the medium and long-term assessment mechanism,and carry out equity incentives when historical valuations are low.