Growing enterprises need a large number of stable talent executives, and enterprises will use equity incentives to retain these employees. But it is not really to delegate shares to employees, but to distribute the company's profits to these people according to the proportion of shares according to the company's agreement, so as to motivate and retain employees and protect the company's core shares.
2, value-added rights
Value-added rights cannot be transferred or used to solve other debt problems. When the appreciation right expires, the market price of the stock will be deducted from the share price when it was originally granted. The excellent management of the operator makes the company value-added, then you can get the value-added part of this part of the stock, and use the actual income of value-added to encourage managers to work hard.
3. Real shares
As the name implies, real shares are the shares actually given to employees by the company, and employees have the right to transfer or sell them. But generally speaking, employees must meet certain performance conditions stipulated by the company before they can sell shares. If it is not reached, it can be recovered according to the original price of the company and the real share reward can be recovered.
4. Option incentive
Employees who receive option incentives can pay the pre-agreed share price within a certain period of time. Buy a certain number of shares, and when the company's share price exceeds the option grant price, it can be sold to obtain the difference. Option incentive and dividend right are also the most commonly used incentives for listed companies.
Do employees need to pay for their own equity incentives?
1, required. Because equity incentive is a means to motivate employees to work hard, it is not a reward for employees in essence.
2. Equity incentive binds the interests of employees and enterprises, and can better establish long-term consistent goals.
3. Although the equity incentive needs to be purchased by itself, it is also a scarce resource, and it can get a lot of income after being sold.