Equity incentive model of small companies

Small company equity incentive model;

The first is to implement the employee stock ownership system, so that some employees can hold shares.

Second, employee stock ownership can greatly improve the enthusiasm of employees. Because they can only get more dividends if they create more benefits for the company.

Third, but the employee stock ownership system needs to pay attention to several points. First, when the company is very young, we can consider letting all employees voluntarily hold shares, but with the development of the company, only those employees who have performed well or entered the company for a certain number of years are eligible to hold shares.

Fourth, in order to ensure their control over the company. This share incentive system can choose to set the employee's shares as shares that only pay dividends and do not participate in the company's resolutions, referring to Huawei's share system.

Five, of course, when the company is relatively small, you can choose to let some employees who have made great contributions to the company hold shares and have the decision-making power.

Sixth, in order to make the equity incentive system more perfect and standardized, it is suggested to formulate a relatively simple corporate equity system specification in the early stage, and then gradually improve it in the later stage!

Equity incentive refers to an incentive behavior in which managers and employees share the residual claim of the enterprise by holding the equity of the enterprise, so that the equity holders can participate in the enterprise decision-making, share profits and take risks as shareholders, thus serving the long-term development of the company diligently and responsibly. In fact, equity incentives are not suitable for all companies. Although many companies have done equity incentives successfully, they are mainly related to the characteristics of the industry. Therefore, the company must fully understand the rules of equity incentive before doing it. If it feels uncertain, it would rather not do it or consult a company with equity incentives.

Equity incentive is neutral news, which is negative in the short term and positive in the long term. For listed companies, equity incentive can not only retain talents, but also reduce operating costs, which may lead to stock rise, but stock rise is determined by supply and demand, capital, performance, policies, news and other factors. Equity incentive is one of the ways for listed companies to reward employees with shares. Generally, senior managers, scientific and technological personnel or employees who have made significant contributions in listed companies can enjoy equity incentives, and the shares that are encouraged by equity are generally reserved shares, unlisted shares or shares repurchased by the company.