Study On Optimization Of Equity Incentive Plan Of NEEQ Company BTR

In recent years,the number of NEEQ companies has continued to increase,and corporate governance has become more standardized.In order to stabilize the company’s management team and attract and retain high-quality talents,more and more NEEQ companies are implementing equity incentive plans,following the example of Shanghai and Shenzhen listed companics.However,due to the short establishment time of the NEEQ,most of the listed NEEQ companies are relatively small in scale,grow rapidly and are in emerging industries such as high-tech and the Internet,which makes the imperfection of the equity incentive system and fails to really make the equity incentive stabilize the management team,attract and retain talents and improve the performance of the enterprise.The related issues have attracted the attention of many researchers and business managers.Therefore,this research will select the NEEQ enterprise BTR as the research object,and the purpose is to find out the problems and put forward optimization suggestions by analyzing the specific effect of BTR’s implementation of equity incentives.This paper first summarizes the relevant research on equity incentives,and secondly,based on principal-agent theory,human capital theory and incentive theory,using literature research method,case analysis method and comparative analysis method,from three aspects:market performance,business performance and employee changes,it specifically introduced the equity incentive plan of the NEEQ enterprise BTR,and analyzed the effect of BTR’s implementation of equity incentives.The analysis found that the main problems in the equity incentive plan of BTR are:(1)As a growing high-tech enterprise,BTR’s workforce is gradually growing,but the equity incentive scheme lacks reserved rights and benefits,so new and high-quality employees cannot enjoy the benefits of the equity incentive;(2)For the lithium battery raw material industry,it takes a long time from product development to release,but the validity period of BTR’s equity incentive is short,which easily causes management to pursue short-term performance and ignore R&D investment;(3)The company’s performance assessment indicators in the exercise conditions of BTR’s equity incentive are unreasonably designed.For companies listed on the NEEQ,for the long-term development of the company,companies should not only focus on financial indicators.Finally,according to the incentive theory and human capital and other related theories,it is recommended to increase the reserved equity by 6%with reference to existing successful cases,appropriately extend the incentive validity period according to the tenure of executives or the R&D cycle,and scientifically set the target value of performance evaluation indicators while adding Non-financial indicators,such as:core employee turnover rate,customer satisfaction,R&D innovation level,market share,etc.,so as to improve the performance evaluation indicators of enterprises.While making optimization suggestions,this study also proposes relevant safeguards according to the actual situation of the company.The analysis and improvement of BTR’s equity incentive plan in this paper can provide a reference for the design and implementation of equity incentives for other similar NEEQ companies.