Research On The Effect Of Equity Incentive Implementation Of Wangsu Science And Technology Co.,Ltd

With the arrival of the information age,the importance of software and information technology service industry has been highlighted.The industry is playing an increasingly important role in China’s economic development.Software and information technology service industry has the characteristics of knowledgeintensive and technology-intensive.Therefore,this industry has a huge demand for human resources,and the core technical personnel have received considerable attention.At the same time,more than 70% of the enterprises in the software and information technology service industry are private enterprises.It can be said that private enterprises are a huge force driving the continuous development of China’s software and information technology service industry.As an incentive mechanism,equity incentives are increasingly favored by private enterprises in the industry because they can play a better role in improving corporate performance and stabilizing core technical talents.Despite years of exploration and development,private enterprises in this industry still have many problems in the process of implementing equity incentive.Therefore,it is very practical to study the implementation of equity incentive in private enterprises related to this industry.This article first to the domestic and foreign research results of the study,the study of existing literature content has carried on the classification,and summarizes the main viewpoints of scholars,then introduces the related concepts of equity incentive and several common forms of equity incentive and the principalagent theory,human capital theory and two-factor theory has carried on the induction and summary.Has carried on the induction and the summary,from set out actually,first of all,through the SWOT model to simulate the company of the advantages and disadvantages of internal and external analysis of the opportunities and challenges,on the basis of the implementation of the company equity incentive plan will be summed up in three drivers and summarizes the three phase of the implementation of equity incentive plan,then from the financial dimension,the management dimension and competition dimension to build equity incentive effect evaluation system and research its concrete implementation effect.Through the research,it is concluded that in terms of financial dimension,the implementation of the equity incentive plan has improved Wangsu Science & Technology Co.,ltd.’s profitability and growth ability,and restored the abnormal indicators related to the solvency,but the company’s operating ability has been less affected.In terms of business dimension,the implementation of equity incentive plan promotes the company’s development,helps the company expand market space,and strengthens its competitive advantage.The announcement of the stock incentive plan failed to bring obvious positive effects to the company in the capital market,and the economic growth of the enterprise is worth improving.In terms of the competitive dimension,the rate of talent turnover has been reduced and lower than the average level of the industry,the proportion of core technical talents and the overall educational level of the company have also been improved,and the r&d and product innovation ability of the company has been strengthened.The main problems of the company’s equity incentive plan are: the performance appraisal index design is too simple,the performance appraisal standard of exercise is too low,and the incentive period is short.In view of these three problems,this paper puts forward the following Suggestions: add non-financial performance assessment indicators,use the sequential growth rate as the assessment basis of performance indicators,extend the validity period of incentives,etc.