Research On The Implementation Effect Of Linyang Energy’s Equity Incentive

In today’s market environment,competition among companies is getting fiercer.The industry in which high-tech enterprises are located is characterized by high knowledge and high technology.Therefore,high-quality talents are the core competitiveness of high-tech enterprises.The key to long-term and healthy development lies in whether it can attract and retain high-quality talents.As early as the last century,companies in the United States and other developed countries used equity incentives to retain high-quality talents for companies.This method can also effectively reduce the conflict of interests caused by the separation of ownership and management.More and more high-tech enterprises have begun to adopt the equity incentive system to enhance their own competitiveness.However,compared with western countries,the equity incentive system in my country started late.Many companies will have a lot of problems when implementing the equity incentive system,which cannot be used for reference.Therefore,it is important to study the implementation of equity incentives in high-tech enterprises.This paper firstly sorts out the relevant literature on equity incentives at home and abroad,mainly including the related research on the motivation of equity incentives and the implementation effects of equity incentives,and summarizes the views of major scholars.Then it introduces the related concepts of equity incentive and expounds the related basic theories,including human capital theory,two-factor theory and principal-agent theory.Then,it introduces the situation of Linyang Energy’s equity incentive plan,analyzes the motivation of the company to implement equity incentives twice and the completion of equity incentives,and selects Xinlian Electronics as a comparison company.A comparative analysis was carried out in terms of output and market reaction.Finally,some suggestions are put forward for the problems existing in Linyang Energy’s equity incentive plan.Through the comparative analysis of Linyang Energy’s equity incentives,it is concluded that through the equity incentives,Linyang Energy’s corporate profitability and solvency have been improved,and the impact on operating ability and growth ability is not obvious.There are differences in the responses of them.Generally speaking,equity incentives have a positive effect on enterprises.However,in the equity incentive plan implemented by the company,there are problems such as unreasonable design of performance appraisal indicators,single selection of incentive models,and short incentive validity period.For the problems that arise,this paper gives corresponding solutions: first,the assessment conditions of the incentive plan should be optimized;secondly,the incentive plan can be implemented through a combination of multiple modes;finally,the incentive validity period should be extended.