Research On Risk Management Of Enterprise Equity Incentive

A modern enterprise system based on clarity of ownership and scientific management can improve the efficiency and the competitiveness of the world,and the effective enterprise incentive mechanism is one of the important aspects of it.However,the implementation of the equity incentive system involves the multi-stakeholder interests of the enterprise,while at the same time the company pursues an equity incentive system and its positive performance growth,it often neglects the significant risks behind it.Huawei's equity incentive system has been highly prized for its success in helping huawei to develop quickly,but it's early undisciplined system and operation to today's new time unit option today has hidden big risks.This paper adopts the form of normative research combined with case analysis,summarized the company's equity incentive system in the past years,including the initial stage,the virtual restricted stock stage,the New Deal stage,the saturation rights issue stage and the TUP equity incentive plan.The analysis reveals that huawei's equity incentive system has the problems of five aspects,such as corporate governance problems,legal problems caused by non-compliance of employees' rights and interests,legal problems caused by non-compliance of operation methods,financial problems arising from the purchase of stock funds,and agency problems caused by unfair distribution.Based on the theory of risk management theory,it's found that huawei's equity incentive is not good at risk identification and evaluation in the design process,and it is not done to assess the work of major changes and to not be able to handle the risk information.In view of that risk of share ownership incentive of huawei,the company should consider the risk factors in the development of an equity incentive system,and the enterprise should also establish a sound communication with decision-making mechanism to improve the share incentive and standardize the incentive system and combine the equity incentive with the corporate culture.