Analysis Of The Implementation Effect Of Equity Incentive In High-tech Enterprises Based On Contract Elements

In the current social situation,equity incentives are increasingly important for enterprises.They are considered as the "golden handcuffs" to retain core talents and the "engine" to promote company performance growth.Therefore,equity incentive mechanisms are widely accepted and applied in Chinese enterprises.However,the design of equity incentive contract elements plays an irreplaceable and significant role in the success of an equity incentive plan.Only when the contract elements are designed scientifically and reasonably can the equity incentive plan be implemented reasonably,legally,and smoothly,and truly play its role,bringing considerable benefits to the company and employees,thus achieving a win-win situation.Therefore,this article is based on the contractual elements to study how the contractual elements within equity incentives affect the effectiveness of equity incentive implementation.Against the backdrop of an aging population and increasing emphasis on health,a large number of biopharmaceutical enterprises have emerged.As a hot industry for economic development,the pharmaceutical industry has received widespread attention from the academic community.This article selects Watson Biotechnology,a biopharmaceutical high-tech enterprise,as the case study object for discussion.Watson Biotechnology implemented three equity incentive plans between 2012 and 2020,which have important reference significance in studying the elements of equity incentive contracts.This article delves into Watson Bio’s equity incentive plan and implementation effectiveness through the research path of "theory equity incentive contract elements implementation effectiveness",and proposes optimization suggestions based on this.Firstly,this article analyzes the characteristics and problems of Chinese high-tech enterprises in the implementation of equity incentives in the past decade,and further analyzes Watson Bio’s equity incentive plan based on this.Secondly,based on the perspective of contractual elements,the implementation of Watson Bio’s three time equity incentive plan was interpreted.On this basis,case analysis and financial indicator analysis were used to analyze the effectiveness of Watson Bio’s equity incentive plan after implementation,and a conclusion was drawn that the incentive of Watson Bio’s equity incentive plan was insufficient.Finally,based on the above conclusions,optimization suggestions are proposed,hoping to provide reference and reference for other enterprises.