Equity incentive plan for unlisted companies

Equity incentive scheme for non-listed companies: for non-listed companies, equity incentive is conducive to alleviating the salary pressure faced by the company. Because most unlisted companies belong to small and medium-sized enterprises, they generally face the problem of capital shortage. Therefore, through equity incentive, the company can appropriately reduce operating costs and reduce cash outflows. At the same time, it can also improve the company's operating performance and retain core talents with high performance and strong ability.

Non-listed companies often have a monopoly phenomenon, and the ownership and management rights of the company are highly unified, which leads to the implementation of the three-party system in many cases. With the development of the enterprise, the management right of the company will gradually shift to professional managers. Because the goals pursued by shareholders and managers are inconsistent, there is moral hazard between shareholders and managers, so it is necessary to guide and limit managers' behavior through incentive and restraint mechanisms.