Will startups be divided into options when they go public?

Legal analysis: not necessarily, it is mainly decided by the shareholders of the startup company. In practice, many start-ups will launch their own equity incentive plans to provide long-term incentives to directors, senior managers and other employees with the company's stock options as the goal.

Legal basis: Measures for the Administration of Equity Incentives of Listed Companies

Article 28 The term "stock option" as mentioned in these Measures refers to the right granted by a listed company to the incentive object to purchase a certain number of shares of the company under predetermined conditions in a certain period of time in the future. The stock options granted to the incentive object shall not be transferred, used to guarantee or repay debts.

Article 29 When a listed company grants stock options to the incentive object, it shall determine the exercise price or the method for determining the exercise price. The exercise price shall not be lower than the face value of the stock, and in principle shall not be lower than the higher of the following prices: (1) the average price of the company's stock transactions 1 trading day before the announcement of the draft equity incentive plan; (2) One of the average trading prices of the company's shares in the 20 trading days, 60 trading days or 120 trading days before the announcement of the draft equity incentive plan. If a listed company uses other methods to determine the exercise price, it shall explain the pricing basis and pricing method in the equity incentive plan.