Based Equity Incentive Compensation Tools In Knowledge-based Enterprise Applications Research

Knowledge-based enterprises are the most dynamic and influential organizations in the knowledge-based era, and the staffs who possess human capital such as knowledge, skills, ability and quality are the core elements of the knowledge-based enterprise's survival and development. So how to attract and retain outstanding knowledge staffs, thereby creating greater value for shareholders become the focus of industry and academia.Upon this background, stock-based incentive tools were introduced to practical operations and acquire rapid development. The institutional arrangement that knowledge workers (owners of human capital) and the shareholders (owners of physical capital) share the enterprise's residual claim can meet the knowledge workers psychological demands and thus can fully tap there inherent potential to promote the business performance and shareholder value. However, it is pity that in many practical applications, became of the lack of systematic thinking and design, stock-based incentive becomes invalid and the effect is not satisfactory.Because of this, the thesis analyzes the inherent logic and valuation of stock incentive tools and according to the characteristics of knowledge-based enterprises, considering the objective of maximum of the. interests of shareholders, build a "start -gear-brake" three-dimensional stock incentive mechanism. Start mechanisms includes the coherent design of incentive target, incentive tools, the number of shares, stock sources, incentive opportunity, stock management and other key elements, so to promote stock incentive from the tentative plan to substantive breakthrough. Gear mechanism passes through the whole process of the incentive implementation. It is mainly for the optimization and adjustment of the incentive plan through dynamic performance appraisal and cultural development which ensure the smooth and orderly implementation. Brake mechanism turns to be effective when the particular incident occurs that the stock incentive is unsuitable or unable for continuation and so to reduce the possible risks and potential losses to the maximum extent. Three mechanisms constitute a positive cycle and one complements another in order to safeguard the most superior effect. At the same time, the thesis focuses on a software enterprise to design a stock incentive case.