Study On Equity Incentive Scheme From The Enterprise Life Cycle Of High-tech Enterprises

For high-tech enterprises,both foreign investment and independent innovation are likely to bring excess returns.Therefore,how to enhance the risk-taking effect and motivate,attract and retain talents is an issue that cannot be ignored by almost all high-tech enterprises.Since2006,more and more listed companies in China have tried equity-based incentive as a long-term incentive mechanism,but most of them are lack of experience,and quite a few of them have encountered staff turnover and performance decline after the implementation of equity incentive.The implementation process of equity incentive is roughly as follows:Setting Goals,Accomplishing Goals and Issuing Rewards.The types of goals,the difficulty of accomplishing,the incentive targets,the amount of rewards and other factors will affect the effect of equity incentive.Therefore,it is necessary to evaluate their actual conditions before setting goals,and combining the enterprise lifecycle will help enterprises to judge their growth situation more accurately,and make the shareholding encouraging more effectively.In the article,Accelink,Hikvision and YGsoft are selected as the case companies.The three listed companies are in the growth stage,maturity stage and turbulent stage respectively,with significantly different characteristics in their lifecycle.The equity incentive plan of Accelink is highly consistent with its growth trend.From the follow-up results,the market response,research and development ability and profitability level of the third period equity incentive plan have been steadily improved.The first phase of Hikvision equity incentive plan can better match the development stage of the rapid expansion of the enterprise,but the difficulty of the subsequent plan is reduced,the incentive effect is slightly insufficient,but the enterprise can still maintain the leading position in the industry.The first-phase equity incentive plan of YGsoft had poor adaptability to its cycle,and problems such as brain drain and decline in research and development ability soon appeared.The second-phase incentive plan designed more reasonable exercise conditions,and the recession trend of the enterprise was alleviated during this period.The third-phase incentive plan adopted the incentive method of stock option,which was compared with the restricted stock used before.The greater risk taking effect of this approach means that the company at the turbulent stage is more willing to seek a new growth stage.The article figures out that the equity incentive plan that fits the enterprise life cycle would be effective.Meanwhile,the enterprise should also accurately grasp the industry cycle,update the main products or develop new products timely,then create a new stage,and use equity incentive effectively.