Research On The Impact Of Equity Incentive For Core Technology Employees On Enterprise Innovation

Economic development has entered a new normal,with the increasing constraints of China's resources and the gradual weakening of factor scale's driving force.The changes of product and technology are deepening,and trade disputes between China and American have further highlighted the importance of technological innovation.Faced with the separation of the ownership & control and the principal-agent problem in the incorporated enterprise,with the increasingly complicated management technology,the governance has turned to incentives;compensation incentives,equity incentives,and employee ownership shareholdings are combined to encourage business workers in a more rational way.Innovation is different from simple labor.The importance of technological innovation for enterprises,especially high-tech enterprises,is self-evident.Core technology employees,as the main force of innovation,are critical to the completion of innovation work.In the high-tech enterprises,equity incentives for core technical personnel can realize using equity to “lock” talents,fully mobilize the enthusiasm of human capital,make human resources truly become human capital,furthrt realize technology capitalization,and finally encourage innovation to a greater extent.According to the statistics of Wind database,as of December 22,2018,A-share listed companies have implemented 1,859 stock option incentive plans,which involve 1,213 companies.Stock option incentives above mostly stress on ore technical employees.Therefore,the impact of equity incentives of core technology employee on innovation deserves our in-depth study.Wangsu Technology was listed on the GEM on 2009.It is a high-tech enterprise that provides Internet business platform and belongs to the software and information technology service industry.It launched the first option incentive plan in 2011,followed by the equity incentive plans in 2012,2014,2015,2016 and 2017,and the first five plans all adopted the stock option model.The equity incentive plan in 2017 adopted a composite model of stock options and restricted stocks.By the guidance of relevant theory,this paper sorts out the literatures,analyses industry distribution of the status quo of equity incentives.Taking Wangsu Technology as the case,this paper conduct a longitudinal study and horizontal comparision of the six-phase equity incentive plan of Wangsu Technology.Combined with the the way to assess the core technical personnel,I analyze the exercise of the incentive plan,and further discuss the impact of the incentives of core technicians on innovation from R&D expenditure,R&D employees,and R&D output,and finally set foot in stock price trend and profitability.Lastly,the conclusions and inspirations of this paper are obtained: the equity incentives for core technicians will help to enhance the technological innovation capability of enterprises,which is worthy of application and promotion;however,the evaluation indicators of performance need to be combined with the specific situation of the enterprise,and if the target value is too llow or too high,the plan will lose the incentive effect;the individual assessment indicators for the incentive object should be combined with their occupation.