The Effect Of The Implementation Of The Equity Incentive Of Lexin Technology And Optimization Strategy Study

Since the middle of the 20 th century,in order to solve the divergent interests of the actual shareholders,management and technical level of the company,ease the internal conflicts and promote the sustainable development of the company,large enterprises around the world have introduced the equity incentive system one after another,using shares as a link to form a community of interests among shareholders,management and the technical level of the company,gradually forming a corporate culture of sharing the sweetness and hardship.After more than thirty years of evolution,China’s capital incentive mechanism has gradually matured,and participation in equity incentives has become an important means to attract and retain core talents and ease agency conflicts in science and technology-based enterprises nowadays,but many enterprises still inevitably encounter many problems in the process of implementing equity incentives.This paper selects Lexin Technology in the IC design industry as the case study,which not only enriches the theoretical research related to equity incentive on the board,but also provides some reference basis for companies in the same industry that will implement equity incentive to promote the application and development of equity incentive on the board.This paper firstly compares and summarizes the content of the four stock incentive programs of Loxin Technology from 2019 to 2022 by means of case studies,and further analyzes the characteristics of equity incentive presented by Loxin Technology,and finds that Loxin Technology has made innovations in We found that Lexin Technology has made innovations in incentive mode,exercise conditions and incentive targets.Its characteristics include: single incentive tool,mainly Class II restricted stock;a large proportion of technical personnel among the incentive targets;and the introduction of performance evaluation into the industrialization index of R&D projects.Then the evaluation of the implementation effect of the equity incentive mechanism was focused on four dimensions,including financial index,internal management,customer dimension and growth ability,to analyze whether the enterprise has achieved the expected goal through equity incentive.This paper finds that,on the one hand,equity incentives can improve the quality of employees and technical research and development,reduce agency costs,and optimize the equity structure,and from the financial indicators,equity incentives bring positive effects on financial performance overall.On the other hand,due to the economic environment since 2020,the market response is relatively mediocre,which also indicates that the effect of equity incentives will be affected by objective environmental factors to a certain extent.Finally,it is concluded that there are deficiencies in equity incentive of Lexin Technology,such as high incentive cost,short incentive period,small scope of incentive targets and unreasonable setting of exercise conditions,and corresponding optimization suggestions such as extending the incentive period,expanding the scope of incentive and developing multi-dimensional assessment system.