Legal analysis: employees of subsidiaries can be encouraged by equity. The subsidiary company is legally independent from the parent company, so it has its own independent legal person qualification and an independent and complete company management organization system, so it has greater independence and certain flexibility in business; Of course, equity incentives can be carried out. Equity incentive, also known as option incentive, is a long-term incentive mechanism implemented by enterprises to motivate and retain core talents, and it is one of the most commonly used methods to motivate employees at present.
Legal basis: Branch companies can be established in Article 14 of People's Republic of China (PRC) Company Law. The establishment of a branch company shall apply to the company registration authority for registration and obtain a business license.
A branch company does not have legal person status, and its civil liability shall be borne by the company. A company may set up subsidiaries, which have legal personality and independently bear civil liabilities according to law.