A Study on the Role of Compensation Incentives and Equity Incentives in Technology-based Enterprises

Abstract

Technology-based enterprises, driven by innovation, have flourished in the economic market in recent years. For technology-based enterprises, how to effectively motivate employees to unleash their innovation drive and thus improve corporate performance is a key focus of management in technology-based enterprises. Pay incentives and equity incentives have been widely used in enterprise personnel management in recent years, and previous scholars generally believe that these two approaches can be more effective in motivating employees to innovate and establish a sense of ownership. In order to better study the shortcomings of salary and equity incentives in innovative companies and the strategies to solve them, this paper summarizes the relevant studies and uses Huawei and Hikvision, which have excellent incentive policies, as examples, to find and point out that the level of managerial shareholding and salary level are the criteria for incentives and should be limited to a reasonable range. Secondly, different incentive methods should be used at different stages to optimize the incentive effect.