A Case Study Of IFLYTEK Equity Incentive

In today's rapid economic development,enterprise system in order to adapt to the social development and innovation,however,the development speed of company owner's personal management ability is hard to meet the quickly development and keep up with the needs of enterprises,and enterprise management and management span to further expand,which further promote the expansion and development of manager market so,the importance of human capital in the enterprise is increasingly prominent.In addition,because of the separation of ownership and management system of the company,compared with the owners of the company,its managers to better understand the specific situation of the company,which leads to the asymmetry of information,although the business owners also considered comprehensive supervision,but its feasibility and implementation difficulty but also let the owners flinch.Therefore,in such a contradictory situation,people continue to explore,hoping to find an efficient and feasible method,and establish effective incentive and restraint mechanisms to overcome this corporate governance problem,of which equity incentive is a useful attempt.Since the split share reform in 2005,a series of policies have been introduced for the promotion of equity incentive in high and new technology enterprises.In this context,there are some high-tech companies want to carry out the equity incentive.IFLYTEK is one of the high-tech enterprises which plays an important role in speech technology.Since December 2011,the company start to carry out the equity incentive,and it improved operating performance of the company,employee turnover rate,enhance product innovation,market scale,enterprise status.In this paper,IFLYTEK as the case,through two of the company equity incentive schemes are analyzed and compared,based on the company's financial data,to evaluate the operating performance of the company using financial indicators,analyzed the summary of two equity incentive scheme has advantages and disadvantages,and offer some related advices.In the theoretical point of view,through a case study of IFLYTEK company,from several aspects of financial performance,management behavior analysis of the effect of equity incentive plans of listed companies,explains the significance of the implementation of equity incentive of enterprises,namely: the owners and operators of interest tend to be consistent,weakening the contradiction between the two between the two,which have a common goal,to improve the enterprise's overall competitiveness,conducive to the long-term development of enterprises.From the practical sense,all kinds of advantages and disadvantages of equity incentive based on IFLYTEK implementation are analyzed,and put forward some relevant suggestions for the listed high-tech enterprises,the similar equity incentive plan has a certain significance.