Research On The Design And Effect Of Equity Incentive Scheme For High-tech Enterprises

With the development of information technology,technological innovation has become an important force driving the progress of the times.High-tech enterprises,as the main body of our country to enhance the capability of independent innovation,still have some problems in the process of development.One is the principal-agent problem.Managers often focus on short-term performance,so they have a negative attitude towards innovation activities with large investment,high risk and long return period,resulting in insufficient investment in R&D innovation.The second is to play a leading role in corporate innovation activities The serious loss of core technical talents,which affects the smooth development of R&D and innovation activities of enterprises.Equity incentives can achieve the convergence of the long-term interests of incentive objects and enterprises,and prompt managers to make R&D investment decisions based on the long-term development of enterprises.At the same time,it can enhance employees’ sense of belonging and stimulate their enthusiasm for work,thereby attracting and retaining outstanding talents for enterprises.However,due to the late development of equity incentives in our country,the enterprise’s equity incentive schemes lack scientific rationality,resulting in the effect of equity incentives not reaching the expected purpose,and even becoming a tool for management to seek private interests.Therefore,a scientific and reasonable equity incentive scheme plays an important role in enhancing the innovation capability of high-tech enterprises and achieving sustainable development.The case company in this thesis,Dahua Technology,explored equity incentives earlier.The implementation of its equity incentive plan is a process of dynamically optimizing the plan according to different development stages of the enterprise and changes in the external environment.After multiple equity incentive plans are designed and implemented accumulated experience.Therefore,the study of Dahua’s equity incentive plan is of great reference for the design of equity incentive plans for high-tech enterprises.The research process mainly adopts the combination of literature research and case study.Firstly,on the basis of sorting out and summarizing relevant literature at home and abroad,the research ideas and framework are constructed;secondly,the relevant concepts and theories of the equity incentive scheme of high-tech enterprises are summarized;then the case is introduced,and the general situation of Dahua Technology is introduced in turn,the implementation background,content and implementation of the equity incentive plan;then analyze the design and effect of the Dahua equity incentive plan.First,the design of the three equity incentive schemes is compared and analyzed,and then the effect of the equity incentive scheme is evaluated from the four aspects of corporate governance,financial performance,R&D innovation and human capital.The changes provide the basis;finally draw conclusions and inspirations from the case analysis.Through research,this thesis found that Dahua’s implementation of the equity incentive plan improves the corporate governance effect and R&D innovation ability,attracts and retains more core talents for the enterprise,and makes profits during the implementation of the plan.Significant improvement in capability,growth capability and operational capability performed well,but had limited effect on solvency.On this basis,by studying the influence mechanism of the equity incentive scheme on the effect,the cause of the effect is obtained.The main reasons are the reasonable validity period of the equity incentive plan,the increase in unlocking difficulty,the change in performance indicators and the expansion of the incentive scope,which have an impact on the behavior of incentive objects,which in turn affects the changes in corporate performance.Finally,three conclusions are drawn through the research: First,the design of the equity incentive scheme of Dahua Technology is suitable for the development stage of the company.The design and subsequent adjustment of the elements of its equity incentive plan are generally in line with the company’s development strategy,helping the enterprise to maintain a development level better than the industry during the transition period and under the influence of the international environment.Second,Dahua’s equity incentives The program improves business performance.The performance conditions in the equity incentive plan focus on the assessment of the growth rate of compound operating income,which can reflect the market competitiveness and potential of the product,and enhance the profitability and growth capacity of the enterprise.Third,Dahua’s equity incentive plan has fully stimulated the innovation vitality of the enterprise,which is inseparable from the improvement of Dahua’s follow-up equity incentive plan.Through the research on the equity incentive plan of Dahua Technology,this thesis draws the following inspirations for the implementation of equity incentive plan for high-tech enterprises: firstly,it should be oriented by research and development innovation;secondly,multiple performance indicators should be established;thirdly,multiple Equity incentive plan.