Literature Review of Equity Incentive Based on the Perspective of Life Cycle Theory

Abstract

Since the introduction of equity incentives into China, more and more domestic listed companies have used equity incentives as a main incentive mechanism to motivate employees and promote the stable development of the company, and most of them have achieved good results. However, equity incentives are diversified, and different equity incentives have different incentive effects. From the perspective of the company's long-term and stable development, it is particularly critical to select the most appropriate form of equity incentives according to the life cycle and its own development stage. This paper summarizes the relevant literature on equity incentives and life cycle at home and abroad, and finds that most scholars believe that equity incentives can often achieve the expected incentive effect, and the equity incentive plan based on the perspective of life cycle can also help to further enhance the positive effect of equity incentives.