A Study On The Motivation And Effectiveness Of Equity Incentives Motivation Of Iflytek Co.,Ltd

In the increasingly fierce market competition,the phenomenon of separation of power in enterprises frequently appears,the principal-agent problem between the owner and operator of the company keeps emerging,the demand for talents and the lack of industrial competitiveness are hindering the development of enterprises.In order to solve the problems in the development of enterprises,equity incentive plan arises at as historical moment.Through the implementation of equity incentive plan,enterprises can make shareholders and managers reach the same interest goals,while stabilizing the company’s core team and attracting external talents.It can also optimize the internal ownership structure and promote the long-term development of the company.This paper understanding the motivation and effectiveness of equity incentives through case selection,aiming to provide some references for other domestic enterprises’ equity incentive plans through the implementation experience of the case enterprise.This paper selects Iflytek Co.,Ltd.,one of the important pillars of the national economic development,as a representative of the information technology industry.First of all,the relevant literature at home and abroad is systematically sorted out.Secondly,the relevant concepts and theoretical basic are elaborated.Then starting with the status quo of the industry,The actual implementation of equity incentive programs in domestic and international companies is summarized and analyzed,and on this basis,the process of IFLYTEK first three equity awards is elaborated;starting from the initial realization of the motivation,the basic content of the equity incentive is firstly explained,and finally,the possible corporate market impact,long-term financial impact and non-financial impact of the incentive are analyzed in depth..Through the full text of the study,through the implementation of equity incentive can effectively improve the long-term financial performance of enterprises,improve executives to enterprise’s loyalty,the overall quality of employees and promote the research and development of the enterprise’s innovation ability,It also provides a positive feedback on the market environment in the short term,laying a solid foundation for the company to achieve its long-term goals.Finally,the article concludes by pointing out the shortcomings of KDDI’s equity incentive plan and making some suggestions: the assessment indicators for both the second and third equity incentive were set too singularly,and the development status of the enterprise is not taken into account when setting,which ultimately leads to the failure of the second equity incentive exercise;Therefore,in setting assessment indicators,enterprises should be more diversified and match their strategies.Secondly,as a high-tech industry,it is necessary to strengthen the incentive for core technical personnel.If necessary,the incentive object can be dynamically combined with the position to improve the incentive effect.At the same time,there should be matching exercise conditions for different indicators,not too high or too low.Make the above improvements to improve the ultimate effect of equity incentive.