| In the world,the first company to implement equity incentive is Pfizer of the United States,which sets the motivation for all employees of the enterprise.The motivation of the implementation is to increase employees’ income,reasonably avoid taxes,motivate employees,improve enterprise performance and promote sustainable and long-term development of the enterprise.Through practice,the equity incentive plan effectively mobilizes the enthusiasm of employees,and the enterprise income rises year after year,and the stock price rises continuously.Subsequently,some capitalist countries in the United States and Europe have followed suit.The first to implement equity incentive in China is Vanke shares,whose original intention is to make profits for all employees of the company.The conditions for unlocking are not even related to corporate performance,but even so,the corporate performance is still rising year after year,and the stock price keeps rising.After that,some domestic listed companies also gradually began to implement equity incentives.Based on the information disclosed by these enterprises,domestic and foreign economists carry out research on the implementation of equity incentive for enterprises.Through the analysis of numerous cases,it is found that equity incentive and enterprise performance are not necessarily positively correlated,and the results may be positively correlated,not significantly correlated,not correlated,or even negatively correlated.Visible enterprise implementation of equity incentive,the results do not necessarily conducive to enterprise,in some cases even harm the interests of the owners in an enterprise,internal management confusion,not conducive to future development of the enterprise,so enterprises implement equity incentive can not blindly follow suit fast,also not all enterprises are suitable for the implementation of equity incentive,the enterprise to obtain good effect must have a certain environment and conditions.The domestic equity incentive environment,in 2016,the measures for the administration of the listed company equity incentive(order no.126 of the China securities regulatory commission)issued for signs,for the implementation of equity incentive of listed companies have become system measures for the management of the implementation of equity incentive of the external environment increasingly mature,domestic equity incentive is becoming a domestic listed company incentive specific common ways and means of staff,especially for the talent and technology as the support of high-tech enterprises,through the implementation of equity incentive to retain staff,improve thecompetitiveness of the enterprises in the talent market has become a kind of important method.Therefore,through case analysis of enterprises that have implemented equity incentive and achieved good results in China’s high-tech industry,the reasons and conditions for its success can be analyzed,providing examples and inspiration for other enterprises to implement equity incentive.Hand information selected in this paper was established in 1996,and is one of the earliest ERP consulting and implementation companies in China.It was listed on the gem of Shenzhen stock exchange in 2011,and was the first ERP consulting company listed on a-share market in China.Its industry is information transmission,software and information technology service industry.With the rapid progress of information technology and the huge market brought by the transformation and upgrading of China’s manufacturing industry,information transmission,software and information technology service industry has been a rising emerging industry in China.In the increasingly fierce industry competition,how to retain talents is a major issue that every enterprise in this industry must face.In August 2014,Hand information released the "draft of 2014 restricted stock incentive plan(draft)",with a total of 616 subjects to be encouraged.The actual number of subscribers was 556,mainly the core technology(business)personnel of the company.The incentive plan is divided into three periods of unlock.By the end of 2017,according to relevant announcement of Hand information,the three periods of equity incentive plan of Hand information in 2014 have been unlocked successfully.With the implementation of equity incentive,Hand information has retained talents in the highly competitive information transmission,software and information technology service industries,improved the performance of enterprises and increased the wealth of shareholders.It is a relatively successful case.By analyzing the equity incentive plan case of Hand information in 2014,this paper analyzes the influence and mechanism of equity incentive on enterprise performance,summarizes its successful experience,and provides enlightenment for other enterprises to implement equity incentive.This paper USES the literature research method to review the achievements made by economists at home and abroad in the implementation of equity incentive on enterprise performance.The information of Shanghai Hand is studied through case study.By qualitative and quantitative analysis,the information and financial data disclosed by Shanghai Hand information technology from 2012 to 2017 were analyzed and studied,and the influence of equity incentive on Hand information was obtained:(1)it stabilizes the talent team of the enterprise,attracts talents and improves the innovation ability of the enterprise;(2)improve the profitability of the enterprise;(3)promote the operation capacity of the enterprise;(4)promote enterprises to form long-term incentive mechanism.Based on the case study of Hand information,the mechanism of equity incentive for enterprises is as follows :(1)to motivate employees’ working enthusiasm and promote enterprise development;(2)reasonably design the threshold and cash in equity awards by stages;(3)optimize corporate governance and promote corporate culture construction;(4)drive up the cost of violation and restrain the daily behavior of employees;(5)to promote the formation of effective internal supervision mechanisms. |
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