A Study of Equity Incentive Schemes in Technology-based Companies: The Case of iFLYTEK

Abstract

In modern companies, equity incentives have been widely used to improve corporate governance. However, not all equity incentives can achieve the desired effect of the managers, and if the internal factors of the equity incentive scheme are not set properly, the ultimate benefit is often minimal or even negative. As a technology company, iFLYTEK has implemented a number of equity incentive schemes in recent years, but not all of them have achieved satisfactory results. The equity incentive schemes adopted by iFLYTEK have both common typical problems and problems unique to the industry. This paper will take the equity incentive scheme of iFLYTEK as the research object, analyze its scheme, subsequent implementation status and problems, and make suggestions for equity incentive schemes for technology companies.