Research On The Implementation Effect Of Equity Incentive Plan In Science And Technology Innovation Board Companies

As China’s economy shifts from a stage of rapid growth to a stage of high-quality development,deepening supply side structural reform is urgent.The establishment of the Science and Technology Innovation Board in June 2019 is an important measure to promote financial supply side structural reform.The 14 th Five Year Plan requires accelerating the promotion of institutional innovation that adapts to the characteristics of science and technology innovation companies,and promoting the high-quality development of listed companies on the Science and Technology Innovation Board.The innovation of the equity incentive system on the Science and Technology Innovation Board is an important part of it.ZW Company is one of the first science and technology innovation companies to release equity incentive plans on the Science and Technology Innovation Board,and has a competitive advantage in the integrated circuit and pan semiconductor industries.The incentive plans it has released have many highlights and are worth in-depth analysis.By analyzing the novelty of its plan,its impact on corporate performance,and the problems in plan design,it can provide certain reference significance for other companies on the Science and Technology Innovation Board to develop equity incentive plans.Whether the equity incentive plan can be carried out smoothly and has a good implementation effect in the future requires consideration of various factors,such as the selection of equity incentive tools,the determination of the scope of incentives,or the establishment of the grant price.This includes detailed design in various aspects,and the development status of the enterprise itself and the industry situation will affect the formulation of specific incentive content,Therefore,the implementation effect of incentive plans for each enterprise may vary greatly.Based on this,this article selects the incentive plan of ZW Company as the research object and selects specific research methods for writing.Specifically,the research approach of this article is to first elaborate on the research background,purpose,and significance,collect and summarize relevant literature;Secondly,elaborate on the concepts of China’s science and technology innovation board,equity incentives,and equity incentive methods;Next,count all equity incentive plans since the opening of the Science and Technology Innovation Board,summarize the common characteristics of their plan settings,and make evaluations;Focus again on ZW Company and provide an introduction to its business situation,motivation for implementing equity incentives,and specific incentive plans;Afterwards,through horizontal comparison with the industry average and vertical comparison with the company’s own annual data,comprehensively evaluate the implementation effect of its plan;Finally,based on the content of the equity incentive plan of ZW Company,analyze the existing problems and propose improvement suggestions.Based on the above analysis,the following conclusions have been drawn: firstly,the equity incentive plan of ZW Company has a high degree of innovation,effectively applying various innovative points of the new regulations of the Science and Technology Innovation Board,and most of the element designs are relatively reasonable.The incentive plan as a whole has a positive effect on ZW Company.Secondly,the new regulations on equity incentives on the Science and Technology Innovation Board in China provide a more relaxed policy environment for companies on the board,allowing them to break through some of the past limitations and promote high-tech enterprises to achieve their development goals with more flexible incentive plans.However,accordingly,the board companies should also make continuous adjustments based on the actual internal and external environment,such as effectively classifying incentive targets,improving performance evaluation standards Reasonably setting incentive deadlines,etc.,in order to better leverage the benefits of incentive plans and ensure stable and sustainable development of the company.