A Study On The Equity Incentive Of HP Co., Ltd.

HP company is a private high-tech company, established in September 2003, main services including research, development, sales and technology support of IP multi-media and telecommunication system. After years of development, the company has obtained advanced technology in the core area of multi-media telecommunication, and sizeable market share in HD video conference, monitoring and guidance, video integrated circuit in China. In October 2010, HP successfully IPO-ed on Shenzhen Stock Exchange- Growth Enterprise Market Board(A-share).As a technology and knowledge-concentrated new tech company, human resource is the core competency. At the beginning of 2014, HP started to launch employee stock option incentive scheme in order to attract and hold talents, to establish long-term incentive scheme, and to incentivize the management level staff and experts of core technology. The scheme is to grant more than a hundred of these people with company stock option.The article first discusses the relevant concept, theoretical foundation, common type and development of stock option incentive scheme, which is used as the foundation of the research on stock option incentive scheme of HP.The article then analyses the impact of inner and outer environment on industry development, competition strategy, human resources status quo and incentive scheme of HP, as well as the necessity and feasibility of the incentive scheme. The article also addresses in details the planning of employee stock option incentive scheme of HP.At last, the article evaluates the impact of the employee stock option incentive scheme. The shortcomings of the scheme have been raised and considerations have been given.The article believes that the employee stock option incentive scheme effectively aligns the interest of the shareholder with that of the employees, and therefore has a positive effect on the development of HP, helping to maximize the value of the company. The employee stock option incentive scheme, which is designed based on the company’s strategic goal and development planning. HP’s targeted employee stock option incentive scheme has significant value as a reference and model for other enterprise that is scheduled to launch its employee stock option incentive scheme.