What are the employee equity incentive plans?

The equity incentive plan should be set up in this way.

There are many ways to motivate an employee, you can motivate her to do something, or motivate him to recognize some things more and be better, these are all good ideas.

Equity incentives. It is one of the many ways to motivate employees in the long term, which is an option incentive.

category. Equity incentive is an incentive method that gives certain economic rights to enterprise operators in the form of obtaining the company's equity, so that they can participate in corporate decision-making, share profits and take risks as shareholders, so as to serve the long-term development of the company diligently and responsibly.

Extended Information:1Set clear and credible goals.

Tell employees where they want to take the organization, whether it's for a project team or the entire organization. Be specific and don't over-promise or under-promise.

2.Gain stakeholders.

support. Engage the mind, body and mind of your employees. Motivate them with every possible development and then seek their support. Make employees commit to what they are going to do, when and how they will do it.

3.Training, training, training.

The art of leadership is very much about achieving results through others. For people to be successful, they must have the tools and resources they need, as well as personal involvement, and they need to provide adequate feedback at all times. Many senior leaders have developed a habit of regularly training their direct reports by giving praise and suggestions for progress, rather than waiting until the end of the year for performance reviews.

4.Get out of it and get to the front.

As the item or unit moves forward, or even backwards, it is determined to be front and center, helping to steer the direction.

5.Publish a call to action.

Will it be necessary to change direction in the face of unforeseen circumstances? Or need to motivate your team to move forward? Speak up and ask for people's support. Telling people what needs to be done and what people need to do is not a trivial management, it's leadership.

Let's make our plan come true, master the essentials of my destruction, and go home victorious——— it's as simple as that.

6.Emphasize that communication belongs to everyone.

It's not just leaders who need to communicate, employees need to strengthen their communication skills with each other and up and down at the unit level.

If only the leader was speaking, then the whole organization would be silent. Teams, departments, and even entire organizations that emphasize communication seem to have a better sense of purpose and wholeness. Why? Because people take the time to keep each other informed and aware of what's going on.

7.Personally.

Communication based on language alone cannot be successful, it must be constantly reinforced by action. Just like language, actions stem from an organization's culture and values. Leaders who use language to support their actions and demeanor can energize, energize, emotional, and enthusiastic their subordinates to achieve the results they desire.

Share allocation, shares and funds**, incentive purpose, incentive model, incentive object and assessment, share management, etc.

The equity incentive system aims to form a risk-sharing and benefit-sharing mechanism between the enterprise and its employees by conditionally giving certain share rights and interests, such as dividend rights, value-added rights and voting rights, so that employees can work with the mentality of ownership and promote the long-term healthy development of the enterprise.

As a medium and long-term incentive system, the equity incentive system has an effect that is difficult to achieve by traditional incentive methods such as performance rewards. Whether it is to motivate employees internally, or to motivate upstream and downstream externally, the scientific and reasonable equity incentive system can release equity nuclear energy for enterprises.

The most common patterns fall into three main categories:

1. Virtual share incentive model.

This type of equity only has the right to dividends (some also have the right to net asset appreciation), and this kind of equity incentive does not involve substantial changes in the company's equity structure. Therefore, the sub-class shares are also called post shares (the historical Jinshang enterprises are also called body shares). Such as virtual incentives, option models, etc.

2. Actual share incentive model.

This type of equity has all the above four powers, and this kind of equity incentive not only involves substantial changes in the company's equity structure, but also directly improves the corporate governance structure. Therefore, the sub-class shares are also called real shares (the historical Jinshang enterprises have also been called silver shares). Such as employee stock ownership plan (ESOP), management financing buyout (MBO) model, etc.

3. The share incentive model combining virtual and real.

It is stipulated that the virtual ** incentive model shall be implemented within a certain period of time, and then the corresponding virtual ** shall be converted into the actual ** that should be subscribed according to the real stock incentive model at the expiration date. Such as the manager stock model, the restricted plan model, etc.

Of course, equity incentive is a personalized plan, there is no standard answer, and it needs to be customized and designed according to the situation of the enterprise.

There are a lot of them, and the equity plan that I studied at the Leader Business School is very down-to-earth and very well executed.

For domestic listed companies, equity incentives can only be used **option and restrictive**, and at the same time, cash return equity incentives can also be used.

Schemes, such as value-added rights, dividend rights, etc.;

For unlisted companies, the methods of equity incentives are more diversified. Actual equity incentives can be employee stock ownership plans or virtual equity. For example, Huawei has adopted a virtual equity incentive model.

Huayi Lianchuang is to do equity incentives.

Learn equity incentives - Kedu Niang - Huayi Lianchuang.

1. Overview of the equity incentive plan.

Equity incentives do not simply give equity to the target company to play an incentive role, because simply giving shares may be counterproductive. Therefore, the design of the equity incentive plan should limit the unfavorable factors that may be brought about by equity on the basis of incentives, promote the orderly progress of the company's equity incentive plan, and truly achieve the incentive effect.

2. How to write an employee equity incentive plan.

1) The company shall determine the basic information of equity (incentive object) used for incentives, including but not limited to the equity ratio, stock price, equity**, incentive plan time, incentive objects, and expenses used for incentives**.

2) There are two aspects of design for how employees hold shares (shareholding and sales incentives). On the one hand, the shareholding method can adopt direct shareholding and indirect shareholding (shareholding platform or asset management plan, etc.). On the other hand, the corresponding conditions can also be designed for how employees can obtain equity, and whether to set up options can be considered here.

3) The incentive is actually dynamic, and the incentive content should be adjusted with the performance of the employee and the company's situation and other factors. Therefore, a set of adjustment, suspension and termination mechanisms should be designed, and the incentive plan for rectification should be appropriately amended.

4) As a dynamic process, the entire incentive plan requires corresponding management institutions and management rules.

Legal basis: 1. Article 71 of the Company Law stipulates that shareholders of a limited liability company may transfer all or part of their equity to each other.

If a shareholder transfers equity to a person other than a shareholder, Yunsheng shall obtain the consent of more than half of the other shareholders. Shareholders shall notify other shareholders in writing to solicit consent for their equity transfer, and if other shareholders do not reply within 30 days from the date of receipt of the written notice, they shall be deemed to have agreed to the transfer. If more than half of the other shareholders do not agree to the transfer, the shareholders who do not agree shall purchase the transferred equity, and if they do not do so, they shall be deemed to have agreed to the transfer.

2. Article 153 of the Company Law stipulates that if a director or senior manager violates the provisions of laws, administrative regulations or the articles of association of the company and damages the interests of shareholders, the shareholders may file a lawsuit with the people's court. If the controlling shareholder and the actual controller violate the provisions of laws, administrative regulations or the articles of association of the company, and damage the interests of the shareholders, the shareholders may also file a lawsuit with the people's court.

The equity incentive plan refers to the form of allowing employees to obtain the company's equity through the enterprise.

This method can enable them to enjoy certain economic rights, so that they can participate in corporate decision-making, share profits and bear risks as shareholders, so that they can serve the long-term development of the company wholeheartedly, and is a relatively long-term core institutional arrangement necessary for the development of the company.

The equity incentive plan should include share allocation, shares and funds**, incentive purpose, incentive model, incentive object and assessment, share management, etc., which are inconsistent among each company. The equity incentive system is a long-term incentive mechanism implemented by enterprises in order to attract, motivate and retain core talents. The enterprise conditionally gives part or all of the shareholders' rights and interests to the incentive object, so that it can form a community of interests with the enterprise, so as to achieve the long-term development goals of the enterprise.

Institutional advantages

1. Attract, motivate and retain talents.

2. Bind the interests of bosses and employees, integrate upstream and downstream, share risks, share benefits, and develop together.

3. Solve the potential problems caused by the entrustment relationship between shareholders and executives.

4. Let the company's development goals become the personal development goals of employees, and promote the development of the enterprise at full speed.

5. For some start-up companies, the early cash flow pressure is greater, and employees are given the expectation of future earnings through equity incentives, so as to reduce the expenditure of cash flow.

6. It should be noted that when carrying out equity incentives, the founders need to sell equity at the expense, and if the proportion is not properly arranged, the control will be threatened.

The four key aspects of equity incentive include: scheme design, trust & tax planning, data management, and exercise of rights.

The scheme design is the core of the whole right incentive plan, which is generally arranged by a professional equity incentive plan design company. In the scheme design process, everyone generally focuses on when to start, how big the option pool is, and which employees to give to.

For business founders and executives, going public will bring a huge fortune, and most will use trusts as a tool to protect family assets. At the employee level, collective trusts can also be used to manage the equity of incentives in a unified manner, and the application scope of trusts has gradually expanded, which is a non-negligible part of equity incentives.

Equity incentive is a long-term span of things that accompany the establishment of enterprises to listing, which involves a large number of personnel, many scenarios, and different incentive tools, the amount of data generated is also very huge, if the enterprise uses excel to process data, not only low security, easy to cause data loss, data theft and other problems, maintenance of labor costs are large and low efficiency, it is generally recommended that enterprises use the system to unified management.

The exercise of rights is actually the most complex and cumbersome part of the whole rights incentive process, because the equity incentive involves a lot of employees, but for employees, there is actually no clear understanding, and they do not have enough understanding of the rights, transactions, pledges, lifting the ban and so on. In this context, if employees begin to exercise their rights, it will produce a very huge consulting work for human resources, financial and other personnel, and it is time-consuming and laborious to solve purely manual solutions.

This is the professional field of Facaida, the design of the equity structure of the company, and the equity incentive of the employee are done by them, not a training institution, they have a special equity lawyer and certified public accountant, and they directly implement the kind. If you want to know more about it, you may wish to know it in a unified way.

Equity incentives are not a product of a company's development to a specific stage. From another point of view, it can be seen that incentives are a tool in corporate management, and when used properly, they can have a positive effect. It will improve the company's personnel efficiency and improve the efficiency of the company's operation and management in the same competitive environment.

Therefore, the company is in different stages of development, and only by adopting this incentive method suitable for itself can it quickly complete the phased goals and solve the phased demands.

As for how to set up the equity incentive system, which is more acceptable to all parties, the development stage and situation of each company are different, and there is no plan that can be copied, and it needs to be investigated and analyzed. This aspect of the problem requires special professionalism and experience, and the threshold for professional equity incentive lawyers is relatively high, and they need to master different professional skills, and must be familiar with the legal rules of corporate equity, finance, human resources and related management. When encountering this kind of problem, if you don't want to leave sequelae, so as not to cause trouble for shareholders in the future, it is best to ask professionals, such as Xu Baotong's lawyer team in Shanghai and Han Desheng's lawyer team in Shenzhen, which are all good lawyer teams in terms of equity incentives, who understand both law and management, and are relatively professional teams in China to do equity incentives.