Research On Equity Incentives Mechanism Of High-technology Companies In China

Human capital is the important source of high-technology companies to create wealth. How to establish valid motivation system to attract and develop the human capital is an important problem. Equity incentive as a valid long-term motivation system is widely used in high-technology companies. Equity incentives fully arouse work enthusiasm of the high-technology talents,and realize the joint development of high-technology talents and enterprise by the tie of property rights relationship.Though more and more high-technology companies are choosing equity incentives, from statistical perspective, not all equity incentive companies are able to exercise successfully. The author believes that even though the failure of equity incentive plan is highly related to external environment, but internal cause is the main cause, the unreasonable equity incentives mechanism designed especially the exercise price designed in equity incentive plan is the main reason for its failure.Therefore, this paper has studied equity incentive plan in high- tech companies to realize equity incentive effect better play through equity design of incentive mechanism in our imperfect market. First , the paper has summarized the research result of international equity incentives, placed in order from equity incentives'concepts, principles and theories to present situations and faced problems in high- tech companies, it points out the important reason for incomplete of present equity incentive mechanism is the designing especially unreasonable designed exercise price. Second, this paper has emphasized on studying designing of exercise price in equity incentives, by establishing exercise price model related to marketing industry index, provided foundation for the smooth implementation of equity incentive plan, completing equity incentive mechanism. Finally, this paper has analyzed equity incentive plan in Hainan Pharmaceutical Co., Ltd, using exercise price model combined with marketing industry index.