Optimization Of Equity Incentive Scheme For TW Electronic Company

Equity incentive has been widely used by many enterprises,and is considered as an important way to solve the proxy problem in modern enterprise management.Since the reform of non-tradable shares in 2006,more and more domestic companies have also begun to use equity incentive schemes to promote the development of enterprises.By the fourth quarter of 2022,about 40%of the domestic listed enterprises have implemented equity incentive plans.However,there is still a certain gap between the evaluation of the incentive effect of domestic enterprises and that of European and American enterprises,mainly due to the immaturity of the domestic capital market and the lack of experience in the implementation of incentive programs.The advantages and disadvantages of the incentive plan directly affect the achievement of the incentive plan,so how to design a more perfect and scientific equity incentive plan is an important issue that enterprises need to consider.Therefore,it is necessary to conduct an in-depth analysis of the existing enterprise incentive scheme,recover the problems,and put forward improved suggestions,and then promote the continuous improvement of the equity incentive of enterprises in China.TW Electronics is a domestic listed enterprise,focusing on the field of communication equipment,and has been established for more than 30 years.In 2015,TW Electronics implemented a 3-years equity incentive plan for employees,which was terminated in 2018,involving the company’s senior executives and core technical personnel.However,the actual data observation shows that the effect of the incentive plan is not good and fails to meet the expected incentive index.The equity incentive case as the research object,first of the concept of equity incentive,clear the theoretical knowledge and related research of the problem;then through the TW electronic equity incentive scheme,the comparative analysis and data analysis method,combined with the enterprise finance,personnel and growth related information,to evaluate the implementation effect,and the implementation process data,and reveal the causes of failure.Finally,the cases and data of enterprises in the same industry are compared,and the corresponding optimization strategies are given from the aspects of incentive timing,incentive mode,grant price,incentive object,exercise conditions,etc.This paper aims to provide a reference for other companies in TW electronics and communication equipment industry to avoid corresponding problems when designing equity incentive schemes.