| Creativity can reflect the holistic national power.Modern high-tech enterprises are at the forefront of innovation and ought to persist in reinforcing their own innovation capacity,so as to add to and contribute to the improvement of China’s comprehensive national power.Effective research and development can help a company to have new services,skills,technique or products that will make up it a ground in the market and generate substantial profits and returns,changing its performance levels.Executives are in charge of all types of business activities in a company,and R&D is an important part of this,as their decisions directly influence the direction and investment in innovation and R&D.It is clear from principal-agent theory that because of the lack of unity between ownership and management,executives may be short-sighted,i.e.reduce or even refrain from R&D in order to avoid the large risks associated with long-cycle R&D activities,thereby affecting business performance.In order to prevent negative attitudes of executives from leading to such consequences,it is necessary for modern high-tech companies to adopt incentives with them to guarantee that their benefits and targets are aligned with those of the company’s owners and that executives are committed to the sustainability of the corporation and play an active part in the company’s innovation and R&D investments.This paper takes Corporation A as the object of study,based on the corporation’s financial data from 2012-2021,and focuses on five equity incentive schemes to explore its implementation of executive incentives,analyses the current situation of executive compensation incentives and innovation-driven development of Company A.It analyses Firm A’s essential information,including the company profile,the current situation of the development of executive incentives in Company A and the firm’s investment in R&D.It also researches the operation of executive compensation incentives in promoting corporate R&D in terms of R&D results and operational performance.Then analyse the problems of the innovation-driven development of the enterprise based on the perspective of executive incentive,such as the possible unreasonable situation in the equity motive organization such as the setting of the proportion of incentive targets,the assessment basis,the assessment period and its personnel ratio.Because these problems will indirectly affect the R&D results and business performance of enterprises,so finally,in view of the above problems and their causes,countermeasures to improve executive incentives to enhance the innovation-driven development of enterprises are proposed,including optimising the structure of executive remuneration,setting reasonable exercise conditions,setting indicators from multiple angles and improving the supervision and management system of executive incentives.The findings of this paper are contributing to enhancing executive incentives and furthering the productivity of R&D and creativity in corporations;it can prompt enterprises to formulate executive incentive policies that are more suitable for their development,and also has certain reference value for enterprises whose executive compensation systems are not reasonable and perfect. |
