A Case Study Of Hikvision 's Equity Incentive

With the change of market environment and economic environment,the market competition tends to be fierce.State-owned enterprises occupy a unique position in the market economy.The state policy guides the industrial upgrading of state-owned enterprises,encourages state-owned enterprises to use equity incentives to promote enterprise innovation and change,improve enterprise performance,and gives relevant institutional support in policy.At the same time,more and more listed companies begin to implement equity incentive plans to retain core talent.Can equity incentive really retain core talent and tie up performance? Can we reduce agency costs and improve corporate performance? Exploring the mechanism behind equity incentive has theoretical and practical significance.This paper chooses Hikvision,a state-owned enterprise,as the case study object.It focuses on the background and implementation process of the four equity incentive schemes of Hikvision.By using principal-agent theory,human capital incentive theory and two-factor incentive theory,it adopts the research method of combining theory with case,and chooses financial data from 2011 to 2017 as the research basis,and deeply analyses the public.The motivation and characteristics of the scheme design of the company's four equity incentives are analyzed.The impact of the implementation of equity incentives on enterprise performance is analyzed and the incentive effect is evaluated.The main contents of the paper include four parts: the first part is the introduction,which mainly introduces the research background and significance,relevant literature research results,theoretical basis,research content and methods;the second part is the case body,which describes the historical evolution,current development situation and the background and process of equity incentive implementation of Hikvision case company;the third part is the case analysis,mainly from equity,the motivation of incentive implementation,the characteristics of equity incentive scheme and the impact and evaluation after the implementation of equity incentive are analyzed in depth.Finally,the enlightenment part of the case mainly elaborates the inspiration of reducing agency cost by continuous equity incentive scheme,the need for both incentive and welfare characteristics of equity incentive scheme,and the key of equity incentive lies in the creation of enterprise intrinsic value.Through the case study,the paper draws conclusions:(1)The equity incentive designed by the company can achieve the purpose of retaining core talents and promoting the establishment of long-term incentive mechanism.(2)The implementation of equity incentive in the company is both incentive and welfare.Successfully motivated employees,retained core talents,reduced agency costs and improved corporate performance.(3)Hikvision 's equity incentive has a certain impact on financial performance and non-financial performance,which promotes the secondary growth of value creation efficiency,profitability and operational capacity.To sum up,Hikvision,a leading state-owned security enterprise,is regarded as a case study company in this paper to study the positive impact of equity incentive on corporate performance,which has a certain reference significance for other listed companies in the use of equity incentive,and accumulate experience for the effective implementation of equity incentive in the future.