Research On The Motivation And Effect Of Equity Incentives In New Energy Equipment Enterprises

With the advancement of science and technological innovation in the future,under the trend of energy consumption structure upgrading,renewable energy development,and building an environment-friendly society,the characteristics of high-tech,high-growth and high-risk of new energy equipment enterprises will continue to be highlighted.Facing the fierce domestic and international market environment,the key to enhancing the sustainable development capability of new energy equipment enterprises lies in strengthening their core competitive position.Human capital is the main stream of innovation,and in the modern corporate governance,equity incentives are frequently used to help overcome the shortcomings of principal agent problems.In summary,this paper studies the motivation and effect of the implementation of equity incentives on technological innovationon in new energy equipment enterprises and has its theoretical and practical significance.In this paper,Sungrow is selected as the case study object.Firstly,it combines the actual business development needs and strategy of the company to analyze the motives of its equity incentive plan.Secondly,it focuses on the motivations of equity incentives,specifically in financial effects,R&D innovation,and human resources.The study found that during the implementation of the equity incentives,the company achieved certain results in improving the performance level,the total amount of patent output has increased,and the company's overall human resources composition have been optimized.But there are still some problems: Firstly,the company's relevant growth assessment indicators have been greatly improved in the early stage of the implementation of the incentive program,and in the later period shows decline trend,and the profitability of the company's new product is not strong;Secondly,the efficiency of the company's innovation output has been greatly improved in the early stage of the implementation of the first-stage incentive program,but the efficiency has continued to decrease in the later period;Thirdly,the effect of second-phase incentive plan of the companynis relatively poor compared to the first period.Therefore,this paper further explores the reasons for the insufficient effect of equity incentives,and finds that it has the defects of unreasonable evaluation indicators,short exercise period and single equity incentive model.Finally,this paper puts forward some suggestions for improvement based on the business characteristics and industry characteristics ofthe case company,in order to provide reference for the new energy equipment enterprises in China to rationally design the equity incentive plan.