What is the significance of equity incentive scheme to listed companies?

Equity incentive refers to the system of encouraging operators by means of stocks. The so-called equity incentive refers to the incentive system based on stocks. There are mainly two ways, namely, restricted stockoption and stock option, which are a system in which enterprises own a certain number of enterprise shares (stocks) in a certain way under certain conditions to motivate operators. It can effectively combine the short-term interests and long-term interests of enterprises, make operators think from the standpoint of owners, and realize the win-win goal of enterprise owners and operators. In short, equity incentive refers to an incentive behavior that managers and employees share the residual claim of enterprises by holding equity.

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