The Implementation Effect Of Diversified Equity Incentive Strategies In The Lithium Battery Industry

The principle of equity incentives is to allow employees and shareholders to shar e the benefits of company performance growth,in order to achieve the purpose of ince ntives and constraints,which can effectively reduce "agency risk".The same enterpris e can implement multiple equity incentives,also known as diversified equity incentive s.With the rapid development of the new energy industry,the future development of t he lithium battery industry will highly rely on the technological advantages of enterpri ses.Seizing market opportunities in the technological war and stabilizing market share is the goal of each enterprise,which requires a large number of high-quality technical talents.Equity incentives are one of the important means to attract and retain talents.S o the rationality of the design and effectiveness of equity incentives is the focus of this article,to determine whether enterprises in the lithium battery industry can achieve ra pid development through equity incentives.This article selects Yiwei Lithium Energy,a dark horse in the lithium battery indu stry,as the research object.The reason is that Yiwei Lithium Energy,as the first enterp rise in the lithium battery industry to start equity incentives,has been on the incentive path for twelve years.Its incentives have the characteristics of diversity,long-term eff ectiveness,and scale,and the incentive plan has been continuously improved.This arti cle takes Yiwei Lithium’s diversified equity incentive plan as the research object,focu sing on analyzing the rationality and irrationality of its diversified equity incentive pla n design.At the same time,it analyzes the implementation effect of its diversified ince ntives,summarizes the advantages and disadvantages of its equity incentive strategy,a nd provides reference for other enterprises.By analyzing the design and implementati on process of the diversified equity incentive plan for Yiwei Lithium Energy,it was fo und that there are many unreasonable aspects,such as excessively high incentive goal s,unrealistic plan design,and the existence of management opportunistic behavior.Ho wever,there are also reasonable aspects in its plan,such as reasonable indicator selecti on.This article also analyzes the implementation effect of diversified equity incentives from three perspectives: shareholders,employees,and the enterprise.It is found that t he implementation of equity incentives creates value for shareholders and employees,while also driving R&D innovation in the enterprise.However,it does not improve the profitability and operational ability of the enterprise,but rather has a inhibitory effect on it.Overall,the diversified equity incentives of the case company Yiwei Lithium En ergy need further improvement.In the past,research on equity incentives mainly focused on their impact on corpo rate financial performance,and there was little research on the design of equity incenti ves.There was also little research on equity incentives in the lithium battery industry.This article focuses on the effectiveness of implementing diversified equity incentive s chemes.The research on the implementation effects has added shareholder and emplo yee perspectives,analyzing the effectiveness of equity incentives from multiple perspe ctives and the reasons for their poor effectiveness.This analysis aims to identify the irr ationality of incentive scheme design,and to provide reference for other companies in the lithium battery industry that want to implement equity incentives or improve existi ng incentive policies,Promote and improve diversified equity incentives.