Profit sharing incentive (excess dividend incentive plan and on-the-job dividend incentive plan)
Excess bonus incentive: (1) make employees pay more attention to profits and save costs; (2) Make employees develop the habit of constantly challenging goals and promote the rapid improvement of employees' ability; (3) Make employees feel closer to the enterprise; (4) promoting the rapid improvement of the enterprise subject; (5) Give the team greater incentives and promote growth.
On-the-job bonus incentive: (1) Enhance employees' stability and sense of belonging; (2) Enhance employees' sense of belonging and honor; (3) Improve all employees' attention and participation in corporate profits.
Please note that both incentives are in the form of cash.
Virtual stock incentive mechanism: the enterprise divides the virtual shares according to the total assets currently owned, and signs a contract with each motivated person before the implementation of the enterprise plan, stipulating the number, exchange time and exchange conditions of the virtual shares, and clarifying the rights and obligations of both parties. The motivated person enjoys the cash income brought by the appreciation of the stock price, but does not enjoy the stock ownership.
Advantages: (1) Compared with other equity incentives, the cost is lower, and only the board of directors needs to set up an accounting company to conduct asset accounting, benefit analysis and price agreement. , the design of the external environment is less. (2) The incentive period is long and short-term behavior is avoided. (3) The legal obstacles and liquidation problems of "listed companies are not allowed to buy back tradable shares" have been solved. (3) The motivated person does not need to invest the cost, which solves the problem that employees have no money to buy shares. (4) It does not affect the company's total capital and ownership structure, and avoids the abnormal fluctuation of the company's stock price caused by dependent variables.
Disadvantages: (1) The binding force of the virtual stock incentive mechanism is not as good as that of the stock option, that is, there is no real risk owner, and the binding mechanism is not effective. (2) Virtual shares are exchanged according to the price of the company's shares at that time. If the price is too high, it will lead to excessive pressure on the company's cash expenditure.
Real stock incentive mechanism: the operator is granted a certain number of stock options in the form of a contract, and the operator voluntarily buys them at the agreed exercise price within a certain exercise period, and the operator enjoys the same rights as all other shareholders such as voting rights, dividend rights and equity rights.
It should be noted that this method has the following shortcomings: (1) There are problems in the source and exit channels of the real stock options. For non-listed companies, the shares held by operators have no normal exit channels and cannot be realized, so the shares held will not be rejected. (2) There is no suitable assessment mechanism, and there are many disputes about fairness.
Partner incentive: refers to the organizational form in which two or more partners own the company and share the profits of the company, and bear unlimited liability for operating losses, and the partners are the owners or shareholders of the company.
Advantages: (1) The material interests of the owners and operators are reasonably distributed and guaranteed by the system. (2) In addition to the material incentives provided by economic interests, the limited partner system also has strong spiritual incentives for general partners. (3) partnership, the operator is also the owner of the enterprise, and bears unlimited liability, so it can control risks through self-restraint in business activities. (4) In the company, outstanding business backbones have the opportunity to be absorbed as new partners, inspiring employees to forge ahead, maintaining loyalty to employees, and pushing the enterprise into a benign development track.
Disadvantages: (1) At present, there are generally three types of enterprises adopting the partner system in China, accounting firms, law firms and consulting companies, whose human capital is intensive, which leads to their characteristics of light assets, easy replication and high fission. (Simply put, it is relatively easy for lawyers to go out and set up another mountain), which leads to organizational instability.