Research On The Design And Effect Of Equity Incentive In High-tech Enterprise

The competition in high-tech enterprises is fierce,and the internal R&D and innovation of enterprises need talents with professional knowledge.However,the employees of high-tech enterprises tend to be young and have high demand for short-term salary and high mobility,which leads to the inevitable problem of brain drain and weak innovation ability of high-tech enterprises.The equity incentive as a kind of long-term incentive mechanism,incentive object by giving a certain shares,bound to the interests of executives and shareholders,arouse the enthusiasm of the core staff,and at the same time help high-tech enterprises to retain talent,reduce short-term behavior,reduce the risk of brain drain,thus improve enterprise innovation ability,promote the business performance of steadily rising,to reach the company long-term development.Firstly,based on principal-agent theory,human capital theory and incentive theory,this paper reviews domestic and foreign literatures on the design and implementation effect of equity incentive elements.Secondly,according to the characteristics of high-tech enterprises and the requirements of equity incentive,this paper analyzes the key points of equity incentive design of high-tech enterprises and discusses its influence on economic consequences.Finally,Anke Biotechnology,a high-tech enterprise,is taken as the case to analyze the rationality of the motivation and element design of the equity incentive design in 2012 and 2016,and to discuss the implementation effect of the equity incentive from the perspectives of market performance,financial performance and innovation performance.The purpose is to summarize the characteristics of equity incentive design of high-tech enterprises through case study,in order to give some enlightenment to high-tech enterprises in China.The conclusions of this paper are as follows.Scientific and reasonable design of equity incentive can improve corporate performance.For high-tech enterprises:(1)Restricted stock model is more suitable than stock options.(2)The object of incentive should focus on senior management and core employees,and transfer from senior management to core technical personnel.(3)The incentive amount of equity incentive is too low,which will affect the incentive effect,and the incentive amount should be increased appropriately.(4)The period of validity of the incentive shall be based on the development of the enterprise.(5)The exercise price of equity incentive should be set flexibly.(6)Incentive conditions should be combined with financial indicators and non-financial indicators,and included in the comparative data of the industry to eliminate the influence of the industry.