Promoting Enterprise Innovation through Equity Incentive

Abstract

Innovation is the foundation for the survival and development of an enterprise. But the managers of the enterprise are not willing to increase the risk to innovate. In order to encourage managers to innovate and ultimately improve the performance of enterprises, Equity incentive is a very effective method. To promote enterprise innovation through equity incentives, We should first improve the corporate governance structure. Secondly, Enterprises should design reasonable and effective equity incentive plans according to their own conditions, and finally, Government management departments should strengthen supervision and support.