What are the ways of incentive mechanisms for listed companies

"Incentive mechanism" is the sum of the structure, mode, relationship and evolution law of the incentive subject system that uses a variety of incentive means and makes them standardized and relatively fixed in the organizational system, and interacts with the incentive object and restricts each other. Incentives are the means by which companies can translate their lofty ideals into concrete facts. Including spiritual incentives, salary incentives, honor incentives, and work incentives.

There are various incentive models for listed companies in China, but most of them adopt the performance** model. This kind of incentive method, which is only linked to work performance and does not involve stock price, is the same as that of unlisted start-ups, which is in the stage of "making profits", rather than "doing market value". This shows that the operators of China's listed companies are not creating wealth for the society through the correlation between business performance and value under the goal of "truly creating market value-added for the majority of shareholders of tradable shares", so as to create wealth for themselves.

In the process of equity incentive for a company to be listed, the first thing to determine is the method of equity incentive. In general, there are two main ways to choose equity incentives: direct shareholding and indirect shareholding.

Among them, direct shareholding refers to the direct holding of shares by the equity incentive object of the company to be listed, and indirect shareholding refers to the indirect holding of the shares of the company to be listed through a partnership or a company and other employee shareholding platforms. In this way, the methods of equity incentive can be divided into the following three types: direct shareholding by the equity incentive object, shareholding through a limited partnership, and shareholding through a limited liability company.

Dear, hello, the employee incentive scheme of listed companies: equity incentive is a method for enterprises to take out part of their equity to motivate senior managers or outstanding employees. In general, it is a conditional incentive, such as how many years an employee needs to work in the enterprise, or complete a specific goal to be incentive, when the incentivized personnel meet the incentive conditions, they can become shareholders of the company, so as to enjoy shareholder rights.

1. Long-term incentiveFrom the perspective of employee salary structure, equity incentive is a long-term incentive, and the higher the employee's position, the greater the impact on the company's performance. In order to enable the company to develop sustainably, shareholders generally adopt the form of long-term incentives, closely link the interests of these employees with the interests of the company, build a community of interests, reduce costs, and fully and effectively exert the enthusiasm and creativity of these employees, so as to achieve the company's goals. 2. The return mechanism of talent value is not the value of wages and bonuses can be satisfied, and the effective way is to directly implement equity incentives for these talents, closely link their value returns with the company's continuous value-added, and repay these talents for the contribution to the development of the enterprise through the company's value-added.

3. The company's control incentive enables employees to participate in the decision-making related to the development and operation of the enterprise through equity incentives, so that they can not only pay attention to the company's short-term performance, but also pay more attention to the company's long-term development after they have part of the company's control, and are truly responsible for it.

The main functions of equity incentives of listed companies are as follows:

1. The essence of corporate governance and the implementation of equity incentives is to establish a benefit sharing and responsibility sharing benefit distribution mechanism between the owners of the enterprise and the operators of the enterprise, and to improve the company's incentive and restraint mechanism through the interest relationship.

2. Improving performance and implementing the equity incentive plan is conducive to improving the incentive and restraint mechanism of the enterprise, stimulating the enthusiasm and creativity of the operator, thereby improving the operating performance of the enterprise.

3. To protect the company's unbridled interests, according to the "Trial Measures for the Administration of Equity Incentives of Listed Companies", if the object of equity incentive implements related party transactions during his tenure and harms the interests of the listed company, the state-owned controlling shareholder of the listed company shall exercise the rights of shareholders in accordance with the law, propose to terminate the grant of new equity and cancel its exercise qualification. This provision means that a listed company with a major shareholder cannot implement equity incentives. At the same time, if the equity incentive recipient implements related party transactions, damages the interests and reputation of the listed company and has a significant negative impact on the image of the listed company, and causes losses to the listed company, the state-owned controlling shareholder of the listed company may terminate the grant of new equity and cancel its qualification to exercise the right in accordance with the law.

Equity incentive refers to the long-term incentive of the listed company to its directors, supervisors Wang Minju and senior management personnel with the company's ** or ** options, so that they can serve the company's long-term development diligently and responsibly. There are the following ways: performance**; **Option; Virtual ** take the belt; ** Value-added rights; Restrictive**; deferred payments; Operator Employee Stock Ownership; Management Employee Buyouts; Book value enhancement rights.

1. When can the company repurchase the company's equity.

The Company may repurchase the Company's equity under the following circumstances:

1) Reduce the registered capital of the company;

2) Merger with other companies holding shares of the Company;

3) Use the shares for employee stock ownership plans or equity incentives;

4) Shareholders request the company to acquire their shares because they disagree with the resolution of the general meeting of shareholders to merge or divide the company;

5) The shares are used to convert the corporate bonds issued by the listed company that can be converted into **;

6) It is necessary for the listed company to maintain the value of the company and the rights and interests of shareholders.

2. Will the wages of employees be adjusted after the company's financing?

Employees are not guaranteed to be paid or their wages adjusted after the company has financed. Whether to adjust or not is determined according to the company's development policy, and there is no mandatory requirement in law. If the company has an equity incentive plan, it can give employees part of the issue to improve the enthusiasm of employees, but it shall not cause the actual controller of the company to lose control.

3. What are the contents of the prohibitive provisions of the Equity Transfer Company Law?

The prohibitions on equity transfer under the Company Law are as follows:

Article 141 stipulates that the shares of the Company held by the promoters shall not be transferred within one year from the date of establishment of the company. The shares issued before the company's public offering of shares shall not be transferred within one year from the date of listing and trading on the company's ** exchange.

The directors, supervisors and senior management of the company shall report to the company the shares of the company and their changes, and the annual transfer of shares during their tenure shall not exceed 25% of the total number of shares of the company held by them; The shares of the company held by the company shall not be transferred within one year from the date of listing and trading of the company. Within half a year after the resignation of the above-mentioned personnel, they shall not transfer the shares of the Company held by them. The articles of association of the company may make other restrictive provisions on the transfer of the shares of the company held by the directors, supervisors and senior management of the company.

Article 142, Paragraph 3 of the Company Act prohibits a company from acquiring shares of the company. However, there is an exception for any of the following circumstances: (3) using the shares for employee stock ownership plans or equity distress group rights incentives.