Reasons And Impacts Of The Amendment To INVT's Equity Incentive Plan

Equity incentive is currently one of the most commonly used methods for motivating employees.By giving operators certain economic rights,they can participate in the company's decision-making,profit sharing,and risk taking as a shareholder to promote diligence.Conscientious role.Under normal circumstances,a company allocates a portion of equity to motivate executives or outstanding employees,but such incentives are usually subject to conditions,such as time constraints or performance conditions.When the incentives meet the conditions required for equity incentives,they can Own this part of the stock and enjoy shareholder rights.The object of equity incentives is usually the executives who have a greater impact on the company's operations.These employees are closely linked to the enterprise through the form of equity incentives to form a community of interests,which is beneficial to reducing agency costs and giving play to the enthusiasm of employees to achieve the company's development goals.Equity incentive is a long-term incentive.With the common development of employees and the enterprise,it is the combination of the value return of employees and the continuous value-added of the enterprise,so that employees have control over the enterprise.But at the same time,the effectiveness of equity incentives depends not only on their incentive plans,but also on the manager's market,market economic environment,corporate development,and industry characteristics.Therefore,equity incentive plans may not be successfully implemented or require timely changes.In this case,some companies will revise the equity incentive plan to ensure the smooth implementation of equity incentives.This article is aimed at the reasons,process and impact of the revision of the company's equity incentive plan in the context of the domestic system.Based on this,it discusses from three aspects based on the actual situation of the case enterprise.First,it affects the enterprise in the current economic situation.What are the internal and external factors for the implementation of the equity incentive plan revision,and the feasibility analysis of the specific case company to revise the equity incentive plan.Second,the content differences before and after the revision of the equity incentive plan and the reasons for such differences,the impact on the enterprise during the implementation process,including the impact on the company itself and the market response.Third,how is the implementation of the revised equity incentive plan and whether it has achieved the expected results.Finally,through this case study,the results of the equity incentive plan revision of the case enterprise are summarized,and suggestions for the reasonable revision of the equity incentive plan for other companies are given.This article takes Shenzhen INVT Company as a case study object,and studies the cause,process and impact of the revision of its equity incentive plan by studying its revision of the corporate equity incentive plan in the context of slowing economic growth.This article discusses from three aspects,first,what are the internal and external factors that affect the implementation of the equity incentive plan revision in the current economic situation,and the feasibility analysis of the specific case company to revise the equity incentive plan.Second,the content differences before and after the revision of the equity incentive plan and the reasons for such differences,the impact on the enterprise during the implementation process,including the impact on the company itself and the market response.Third,how is the implementation of the revised equity incentive plan and whether it has achieved the expected results.Finally,through this case study,the results of the case enterprise equity incentive plan revision are summarized,with a view to providing other listed companies with more experience and lessons when making equity incentive revision.