Set reasonable performance targets at the beginning of the year. If the incentive object reaches the predetermined target at the end of the year, the company will grant it a certain number of shares or withdraw a certain incentive fund to buy shares of the company. The circulation and realization of performance stocks are usually limited by time and quantity. The rights granted by the company to the incentive object.
The incentive object can buy a certain number of circulating shares of the company at a predetermined price within a specified time, or give up this right. The exercise of stock options also has time and quantity restrictions, and the incentive object needs to pay cash for the exercise itself.
Brief introduction of company equity incentive:
The virtual stock option used by some listed companies in China is a combination of virtual stock and stock option, that is, the company grants the incentive object a virtual stock subscription right, and the incentive object obtains the virtual stock after exercising.
Let the incentive object hold a certain number of company shares, which will be given to the incentive object by the company free of charge, or purchased by the company with subsidies to the incentive object, or purchased by the incentive object at its own expense. The incentive object can benefit when the stock appreciates and suffer losses when the stock depreciates.