Research On Incentive Effect Of Equity In Information Technology Industry

Equity incentive is a kind of long-term incentive,which is the company's equity given to employees under certain conditions.On the one hand,equity incentive helps to strengthen the interests of employees and companies,enhance the sense of belonging and enthusiasm of employees,and enhance the value of employees' work;on the other hand,equity incentive also helps to enhance the value of the company and promote the long-term development of the company.Therefore,many listed companies implement equity incentives to attract or retain the core technical talents needed for the development of the company,but there are still many companies whose implementation of equity incentives policy has not achieved the desired results.China's information technology industry listed companies have many characteristics,such as high intelligence,high investment,high risk.Because of its particularity,the information technology industry has become the largest company to implement equity incentive.So far,61.85% of the companies have implemented equity incentive plan.But even if employees are granted partial equity,there are still many technicians who constantly choose to move to other companies because of better treatment,development prospects and other personal reasons.On average,every technician who works in a company for no more than three years will choose to re-employment.So more and more people begin to study the company's equity incentive scheme.Some people think that the equity incentive has not achieved the desired results.In practice,this paper finds that although the information technology industry is the most stock-based incentives,most companies implement short-term incentives.The incentive period mostly stays in 2-4 periods.The incentive effect is often not obvious,and it is also vulnerable to other objective factors.Among many companies,Hande Information Co.,Ltd.(hereinafter referred to as Hande Information)has set up different incentive schemes in each period from 2011 to 2017,which is typical for the continuous strengthening of employees.Therefore,it is expected that the effect of equity incentives implemented by Hande Information.This paper takes the seven-stage equity incentive implemented by Hande Information in 2011-2017 as the research object,and analyses the financial effect and non-financial effect of Hande Information respectively,and compares the equity incentive effect of Hande Information with that of the whole industry by using the Wal score method.After further research,it is found that the quality of Hande's financial indicators is remarkable,the turnover rate of employees is declining,and the number of copyright and R&D is also rising.Therefore,we can see that the company's continuing equity incentives make the enterprise develop healthily and have a positive impact.The research finds that the equity incentive scheme of Hande Information has certain reference value.This study summarizes the design ideas of Hande Information Equity Incentive Scheme,and thus draws some suggestions for reference,in order to provide some valuable experience for other companies to improve equity incentive.