Implementation procedure and information disclosure of equity incentive plan of listed companies

After the founder or management decides to start the employee plan, they need to consider the specific arrangements of the employee option plan, including but not limited to the following key aspects:

1. Determine the number of grantees and the number of options according to the categories and time-sharing points of grantees;

2. Select the type of options granted, such as whether additional voting rights and dividend rights are required. Among them, the decentralization of voting rights may increase management risks and management costs;

3. Conditions, time and time limit for establishing the exercise right;

4. Determine the exercise price. As a part of employees' compensation and benefits, the earlier the exercise price is granted, the higher the price discount.

5. Consider the exit mechanism, including the differences in repurchase conditions under different circumstances. In addition, you can also consider whether it is necessary to set a lock-up period;

6. Establish the management organization of employee option plan and improve the approval process.

On the whole, equity incentive covers four aspects: scheme design, trust establishment, data management and exercise landing. Scheme design is only the first step. Among them, the importance of data management and exercise landing goes without saying. These two links are directly related to the smooth implementation of the whole incentive process.