In the first era, this group of entrepreneurs, such as Shi Yuzhu and Zong Houqing, were representatives in the 1990s. They would rather give rich bonuses to corporate executives than equity.
In the second era, the company's full shareholding was the product after 2000. Entrepreneurs in this era have a new consciousness. To be big, enterprises must rely on employees and outstanding talents. So what should be used to motivate employees is equity incentives, represented by Xiaomi and Huawei.
In the third era, the whole people held shares. This is an era that we have seen the signs but have not fully entered. This way tells us that an enterprise that can't integrate resources and share wealth is difficult to become bigger and stronger, or even lose its competitiveness in the later stage.
Equity is the right of shareholders, which can be divided into broad sense and narrow sense. Broadly speaking, equity refers to all kinds of rights that shareholders can claim from the company; In a narrow sense, equity only refers to the right of shareholders to obtain economic benefits from the company and participate in the company's operation and management based on shareholder qualification. Generally speaking, equity refers to the rights enjoyed by investors because of their partnership with citizens and investment in enterprise legal persons.
When investing in a partnership organization, the shareholders bear unlimited liability; When investing in a legal person, shareholders shall bear limited liability. Therefore, although both are equity, there are still differences. For many years, people can't correctly understand equity and enterprise property rights because they haven't seen their origins and studied their internal relations. Some people's habitual understanding of legal person still has some defects.
There are two kinds of shares in listed companies in China: non-tradable shares and tradable shares. Except for the huge difference in the cost of holding shares and the difference in circulation rights, other rights granted to each share are the same. Due to the huge difference in the cost of holding shares, there is a serious injustice between the two types of shareholders.