Equity Incentive Scheme For Pharmaceutical R&D Outsourcing Enterprises Implement Effect Analysis

As a medium and long-term incentive method,equity incentives can have a profound impact on corporate performance and the company’s long-term development.Since the beginning of the millennium,the pharmaceutical R&D outsourcing industry has developed in the domestic market.Although some of the top listed CRO companies have implemented equity incentive policies,the problem of how to retain and motivate R&D talents needs to be solved urgently.Therefore,many CRO companies are willing to implement equity incentive policies to motivate R&D technicians.Although some scholars have paid attention to the development of the CRO industry throughout the literature research,there is still room for discussion on the current situation and effect analysis of equity incentives in the pharmaceutical R&D outsourcing industry.Especially for pharmaceutical R&D outsourcing enterprises in the emerging development industry in China,it is of certain guiding significance to have a suitable benchmark as a reference for equity incentives.This paper studies the equity incentive measures and implementation effects of "Wu Xi App Tec" after returning to the domestic stock market.Through literature retrieval,qualitative analysis,quantitative analysis,projection pursuit method and other research methods,on the basis of the traditional company financial index analysis method,the company’s business performance evaluation system is established with the help of projection pursuit method,and research funds and patents are introduced.The index system is used to evaluate the management ability of CRO companies.On the basis of systematically expounding the formulation background,content and implementation status of the implementation plan of the enterprise equity incentive plan of China’s Wu Xi Pharma Tech,through in-depth analysis of the incentives of "A+H shares" methods,the impact on the company’s financial performance,non-financial performance and stock price changes,find out the possible impact on the company’s R&D innovation ability and the existing problems in the evaluation method due to the setting of the assessment indicators in the incentive plan,and combined with the background of the CRO pharmaceutical industry and the demand for talent retention in the pharmaceutical R&D outsourcing industry,we will explore the advantages and disadvantages of the company’s existing incentive programs and put forward relevant suggestions.I found that the implementation of restricted stock incentives and equity incentives has played a positive role in promoting Wu Xi App Tec’s company performance.The implementation of equity incentive policies in pharmaceutical R&D outsourcing(CRO)companies can improve company performance.Projection pursuit method is used to compare which is a large difference in assets and the performance of companies in the same industry in a high-speed growth period,there will be a deviation that only considers the changes in indicators and ignores the differences in overall volume.