The Impact Of Equity Incentives In Information Technology Industry On Firm Performance

For a long time,how to retain and attract talents to cultivate the core competitiveness of the company has always been a major issue.The priority of human resource allocation is the first element of the allocation of resources.Equity incentive change the traditional salary model,which will closely connect the economic interests of the motivators to the business performance,thus achieve the purpose of stimulating and restrains the operator.The information technology enterprise belongs to the high value-added industry.It creates new value through high technology processing on the basis of effective labor,and it plays an important role in economic development.High and new technology enterprises have high risk,high investment and high income characteristics.Because of their industry characteristics,the information technology industry attracts the core talents for the development of knowledge and technology force,and has become the primary representative industry for the implementation of equity incentive.At the same time,it has a certain innovation in the establishment of equity incentive schemes.The case K selected in this article,as the leader of artificial intelligence,has so far launched the third phase of the stock incentive plan.Summarizing and researching the contents of its programs,we found it draws its practical experience that equity incentives on K company have a positive effect on business performance and R&D innovation performance.And by analyzing its application effect,it further summarizes the effectiveness of its incentive plan and areas for improvement.It has certain reference significance when implementing equity incentive plans for companies in the same industry.This article studies the equity incentives of the case companies in the industry,which will help improve the equity incentive plan mechanism and further help the progress of the information technology industry.