The Case Study Of The Financial Performance Impact Of H Company's Compound Equity Incentive

In order to carry out the central strategic plan for deepening reform,the implementation of the optimization of the listed company investors in the third Plenary Session of the 18th CPC Central Committee decided to "reward system" spirit,promote the formation of capital owners and workers to the interests of the community,improve the core competitiveness of enterprises,enterprises choose to implement equity incentive.The equity incentive as a long-term incentive mechanism,principal-agent relationship decision the enterprise comprehensive management ability,management talent and retain the core technical personnel for the enterprise.Especially the high-tech enterprises,technology and innovation is the core competitiveness of enterprise development,equity incentive can stimulate the enthusiasm of the staff,and the public stability Our development,to enhance the enterprise value.The current equity incentive modes of most listed companies,equity incentive modes can play certain incentives,but there is no precise positioning of the incentive target range,so this thesis selects the case study of hybrid equity incentive model.This paper combined the equity incentive mode,and the process of implementation of equity incentive plan design,analysis of the combination mode of incentive targets,the different effects of exercise and the standard of the company.Through the implementation of equity incentive plan of high-tech enterprises in five years,the impact on financial performance.This paper mainly through the analysis of equity incentive for financial decisions,agency cost and internal control effect analysis of three aspects of equity incentive.Firstly,combined the implementation of equity incentive equity incentive for executives,the owners and the management objectives consistent with the information asymmetry of the executives no longer need to separate the fight for their own interests,but As for the common goal of the company and the owners.Therefore the equity incentive to improve the effectiveness of the management of financial decision-making and management.To disguise to damage the interests of the company is no longer in their own interests,in all kinds of expenses will be more to consider the profit of the company,the use of management fees are adjusted properly and the way to reduce the agency cost.At the same time,the scope of the composite equity incentive is broad,the implementation of core employee equity incentives help to stimulate the enthusiasm of the staff,improve staff's self-discipline and supervision ability,help the company improve the internal environment.Based on the internal control evaluation mechanism and performance evaluation mechanism The company found that the overall level has improved,effective internal control.Finally,through the case,the combined process of equity incentive and the successful implementation of the exercise were analyzed,hoping to provide reference for high-tech enterprises to technological innovation as the core of the enterprise,to speed up the development process of the composite type of equity incentive,the positive effect is applied to the long-term development of our company.