What is the appropriate proportion of equity incentives?

At different nodes of the company's development, the number of equity incentives will be different. You can refer to the following stages.

① In the initial stage, the influence of shareholders' wishes and equity incentive pool on shareholders' equity ratio is mainly considered. The common market share is 5%- 15%.

② For companies that have established equity incentive system. The total annual allocation in the market is about 2%-4%.

③ Comprehensively consider the quantity ① and listing plan, and control the total reward before listing. The total reward before listing is about 10% (domestic) ~ 15% (overseas).

(4) After listing, the management's attention to the total planned amount decreased, and the common practice was 10%.

⑤ For companies that have established equity incentive system. The total annual grant in the market is about 1%-2%.

Considering the total amount of option pool before listing and the pace of listing, among the technology companies, the total amount of accumulated awards before listing is 10% (domestic)-15% (overseas). However, this data varies greatly among different industries.

After listing, the company also needs to make an equity incentive plan. Take Hong Kong stocks as an example. Hong Kong stocks have a very strong option culture. Chapter 17 of the Hong Kong Listing Rules has a special chapter on option rules. Generally, enterprises listed in Hong Kong stocks will set the total amount of option incentive plans at 65,438+00% based on the upper limit stipulated in the listing rules. US stocks are slightly different, but most companies make long-term plans around the benchmark of 10%.

For companies that have established equity incentive plans, the annual grant ratio of medium-sized companies is generally 1-2%, and the higher the market value of the company, the lower the ratio.