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. More and more companies use equity incentive to make employees play a good role in the development and construction of the company, and many companies also adopt this model to win better development opportunities.
Legal objectivity:
Trial Measures for the Implementation of Equity Incentives by State-controlled Listed Companies (Overseas) Article 3 Equity incentives mentioned in these Measures mainly refer to equity incentives such as stock options and stock appreciation rights. Stock option refers to the right granted by a listed company to the incentive object to buy a certain number of shares of the company at a predetermined price and conditions in the future. In principle, stock options are applicable to overseas registered and state-controlled overseas listed companies. Equity incentive objects have the right to exercise this right and also have the right to give up this right. Stock options may not be transferred and used for guarantee, debt repayment, etc. Stock appreciation rights refers to the right that the listed company grants the incentive object to obtain the benefits brought by the rising stock price in a certain period and under certain conditions. Stock appreciation rights is mainly applicable to companies that issue overseas listed foreign shares. The object of equity incentive does not own the ownership of these stocks, nor does it have the voting rights and rights issue of shareholders. Stock appreciation rights cannot be transferred and used for guarantee, debt repayment, etc.