Stock Incentives as a Long-Term Retention Mechanism and Corporate Performance Enhancer: A Case Study of Hikvision's Stock Plans
DOI:
https://doi.org/10.71222/qpmqw035Keywords:
stock incentives, employee retention, R&D innovation, corporate performance, HikvisionAbstract
This study analyzes Hikvision's stock incentive plans implemented from 2017 to 2022, assessing their role in employee retention, R&D innovation, and corporate performance improvement. Stock incentives serve as a long-term mechanism to align employees' interests with the company's objectives, thereby reducing agency costs and boosting organizational performance. The case study reveals that Hikvision's governance structure has been continuously adjusted to meet the evolving needs of the company and its industry. The company's focus on core employees, particularly in R&D and technological fields, through stock incentives has led to a marked reduction in turnover rates and an increase in R&D investment. Performance-based metrics, such as return on equity (ROE), revenue growth, and economic value added (EVA), demonstrate the success of these initiatives in enhancing financial performance. The analysis suggests that stock incentives have played a crucial role in Hikvision's competitiveness and profitability, providing valuable insights for other companies, particularly state-owned enterprises, seeking to optimize their incentive mechanisms.
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