Research On The Motivation And Implementation Effect Of The Equity Incentive Of Tinci Materials

While the economy continues to develop rapidly,China’s market economy has also entered a new period of development.In order to solve the problem of principal-agent in companies,equity incentives are gradually being promoted and popularised in China.Under the impetus of the national policy of sustainable energy development,the new energy vehicle industry has prospered and promoted the continuous innovation and enhancement of lithium batteries and related fields in the upstream industry.In the current industrial environment,technology research and development in the field of lithium materials has entered a new stage,therefore,equity incentive has become a common way for companies to attract talents.In the field of lithium battery materials,Tinci Materials is a relatively early company to carry out equity incentive,and its practice of equity incentive will be a good reference for the study of equity incentive in other industries.Therefore,this paper takes the rapid development of the lithium battery industry driven by the development of new energy vehicles and the increasing number of principal-agent problems as the background of the study.It selects Tinci Materials,a representative leading company in the lithium battery industry,to analyze the effect of the implementation of equity incentives in terms of market performance,financial performance and non-financial performance.By comparing and analysing the details and implementation status of Tinci’s five equity incentive plans,the paper explores the impact of equity incentive on the company’s performance.The analysis explores the impact of equity incentives on the long-term performance of the company through the analysis of financial and non-financial performance,and establishes a comprehensive evaluation system of the company’s performance by using principal component analysis to link the financial and non-financial performance of the company.The problems that arose in the incentive programme of Tinci Materials were addressed,suggestions for improvement were made,and relevant experiences were summarised as a reference.The analysis shows that Tinci Materials has conducted several equity incentives and achieved better results.Looking at both market performance and financial performance,it can be seen that the overall performance of the first phase of the equity incentive was better,resulting in improved operating capacity,profitability,solvency and growth,increasing the value and influence of the company.The third tranche of the equity incentive scheme did not have a significant positive effect on the company’s performance in the short term,but had a positive effect on the company’s financial performance in the later stages.In terms of non-financial performance,Tinci’s equity incentives have not only boosted the company’s innovation capabilities,but also improved the overall quality of the company’s talent and succeeded in effectively attracting and retaining the company’s core talent.However,in terms of indicator setting and supervision,the company still has some shortcomings and needs to improve the performance assessment indicators and supervision mechanism so as to enhance the effectiveness of the implementation of the company’s equity incentive.