Research On The Effect Of ZTE Equity Incentive Effect

The enterprise equity incentive is an incentive for enterprises the way, in fact is to reduce the agency costs, to make the interests of management and shareholders benefit in the same direction, to enhance the management of work enthusiasm, and increase the enterprise's performance. The last century in 70s the western equity incentive system began rapid development, and from the practice of modern enterprise theory that is indeed achieved positive incentive effect, namely equity incentive makes managers and employees of the enterprise owners, the interests of the three objectives of convergence, to achieve effective incentive for the employees, through the incentive way to solve the principal-agent problem and promote the sustained long-term development of enterprises. In fact, the exploration and practice of equity incentive in China is becoming more and more mature along with the improvement of relevant laws and regulations. Therefore, more and more enterprises begin to accept, study and practice incentive plans in China. Based on this situation, this paper studies the equity incentive evaluation, ZTE enterprise two equity incentive plan and its implementation effect, about the implementation of our equity incentive plan and acceptance of the enterprise or individual has practical effect. It has a positive significance on how to design and choose the incentive mode.ZTE in 2006, in 2013, respectively, the implementation of the two equity incentive plan, as China's high-tech equipment listed companies, the move has attracted much attention and discussion. This paper makes a comparative study of the two equity incentive scheme of ZTE, analyzes and compares the contents of the scheme, and finds out that the mode of restricted stock and stock option has been adopted in the two equity incentive of ZTE. In order to evaluate the equity incentive scheme of ZTE, this paper evaluates the effect of the two phases of equity incentive from four aspects: short-term stock price effect,long-term operating performance, human capital and independent innovation. The results show that the two equity incentives have a positive effect, but the first phase of the implementation of equity incentive effect is short-term, long-term incentive is not enough. Through the comparison of the two equity incentive schemes, it is thought that this problem is mainly due to the unreasonable development of some equity incentive factors, but the choice of the equity incentive model is still appropriate. In addition,enterprises should pay attention to the design of equity incentive elements in the design of equity incentive plan, according to the company's own conditions to set reasonable incentive factors.