Research On The Implementation Effect And Influencing Factors Of IFLYTEK's Equity Incentive

Since 2005,when the split share structure reform,There were a number of policy for China's high-tech enterprises developed equity incentive.In this context,more and more high-tech enterprises began to implement equity incentives.IFLYTEK has an important position in the high-tech enterprises.Since December 2011,the implementations of equity incentive have good and bad effects.The good effects were business performance improvement,low rates of employee turnover,product innovation strength,market size became expansion,corporate status improvement.The bad effects were the management efficiency became lower,the company continued to expand market share in 2013 and 2014,but with the improvement of main business income,research and development costs were also on the rise,in order to achieve performance,employees were wasting of resources.After two vesting period,there are some employees given up exercise,and in 2014,the company faced the financial risk of the enterprise higher than ever before.The implementation of equity incentive got to the bottleneck period,and the company also launched to the second phase of the equity incentive plan at this time.This plan has many aspects,such as incentive object,vesting conditions were also unlike in the past.The research on the influence factors,mainly from the macro and micro factors to analyze the implementation of equity incentive.The macro factors mainly include the maturity of the capital market,manager market maturity and the improvement of the policy and law environment.Microscopic factors mainly from the equity incentive system itself,the company characteristics,corporate governance,executives and staff characteristics,the characteristics of industry.In this paper,through qualitative research and quantitative research,case analysis method to analyze the process of equity incentive,the effect and influence factors of research.Based on the analysis of the implementation of equity incentive problems,put forward the following countermeasures: one is according to different object,design the appropriate incentives;the second is to make the vesting conditions scientific and feasible;the three is the policy and law in our country should to strengthen the supervision of the implementation of equity incentive;the four is to strengthen internal management,etc.Through the analysis of IFLYTEK,hope to provide some good advice for the high-tech enterprises.