Equity pool is a double-edged sword, which can encourage talents to stay in the company, pay sweat for the company, and also cause dissatisfaction among entrepreneurs. The person in charge of the company shall go to the law firm to calculate the reasonable equity pool value. If the operation is improper, it is easy to increase labor costs and equity disputes.
The establishment of equity pool is beneficial to correct the working mentality of employees and improve the cohesion and competitiveness of the company. Because the identity of employees will change after holding shares, from employees of the company to "small bosses" of the company, the enthusiasm for work will be greatly improved.
The establishment of equity pool can avoid the short-term behavior of employees and maintain the strategic coherence of the company. The short tenure of employees in the company will inevitably have a certain impact on the company. Short-term employees will also have some unstable factors, which is not conducive to the company's development strategy.
The establishment of equity pool can attract outstanding talents from outside and continuously deliver fresh blood for enterprises. Fresh blood plays an important role in the development of the company, and the quality of fresh blood determines the future development of the company.