Are equity incentives good for employees?

Hello, equity incentives are long-term incentives for employees. There are other options for this.

William James, a professor at Harvard University in the United States, pointed out in the book "Behavior Management" that through the study of employee motivation, he found that employees who implement piecework wages only exert 20% 30% of their ability; When fully motivated, their abilities can be exerted to 80% to 90%.That is, the same person who receives sufficient incentives plays a role of 3 or 4 times as much as they did before the incentives.

Oak clouds are recommended.

Oaktree Cloud is an enterprise management software cloud (SaaS) with incentives as the core, and its core value is to provide an employee wallet for each enterprise employee, so that each employee can have his or her own points account, cash account, ** account, option account, enterprise annuity account, etc. Oaktree Cloud also provides an application ecology with incentives as the core, including team collaboration software, performance management software, CRM software, etc., which are also the data of employee wallets, so that collaboration, performance, sales and other work can reflect the recognition of employees' work in real time, and reward the corresponding points, cash, ** or options, etc., so that management has a more incentive effect.

1. Let each employee have three accounts that dynamically store incentive value.

1. Points account (quantitative process, recognition feedback).

2. Cash account (reward results, short-term incentives).

Short- and medium-term incentives, which can be withdrawn by node or account that can purchase benefits, trigger rewards to get cash, and get cash when high goals are achieved. Rewards are triggered by project nodes, time nodes, and milestone nodes.

3. **Account (talent retention, long-term incentive).

Purpose: Talent retention (long-term incentive), **: Reward (triggered by point ranking, performance, key results, etc.), Application: Dividends, shareholder status. Trigger reward earning**, which is fixed based on metrics such as performance and point ranking**.

4. Open docking with third-party system APIs

Management tools that use incentives in tandem: team collaboration, performance management, CRM.

Scientific and perfect equity incentives are harmless to both enterprises and employees

There are several reasons for this:

Motivate employees and improve performance

Equity as a link to the interests of employees and the interests of the company tightly bind, which greatly improves the enthusiasm, initiative and creativity of employees. After becoming shareholders of the company, employees can actively and consciously work hard in accordance with the requirements of achieving the company's established goals, in order to maximize the company's interests, release the potential value of their human capital, and promote employees to innovate boldly, so as to improve the company's business performance and core competitiveness.

Form a community of corporate interests

Business owners pay attention to the long-term development and investment returns of the enterprise, while employees are more concerned about work performance and personal benefits during their employment. The difference in the value orientation of the two parties will inevitably lead to the difference in the behavior of the two parties in the operation and management of the enterprise, and it will often occur that employees harm the overall interests of the enterprise for their personal interests. The result of the implementation of equity incentive is to make employees become shareholders of the enterprise, and their personal interests tend to be consistent with the interests of the company, effectively weakening the contradiction between the two, so as to form a community of corporate interests.

It will help the long-term development of the enterprise

Equity incentives enable employees and the company to form a community of interests of "one prosperity and one loss". As a long-term incentive mechanism, equity incentive can not only enable employees to get appropriate rewards during their tenure, and part of the rewards are deferred after leaving office, which requires employees not only to care about how to improve performance during the tenure, but also to pay attention to the long-term development of the enterprise, in order to ensure that they get their own deferred income, which can further weaken the short-term behavior of employees, and is more conducive to improving the ability of enterprises to create value in the future and long-term competitiveness.

Improve employee well-being to attract and retain talent

For companies with good and stable benefits, the implementation of equity incentives can allow employees to share the benefits brought by the growth of the enterprise, enhance their sense of belonging, identity and cohesion, stimulate their enthusiasm and creativity, and help form a corporate culture based on "benefit sharing".

On the other hand, many equity incentive instruments have restrictions on the service period for the realization of the benefits of the incentive recipients, so that they cannot be said to "stay" lightly.

When an employee leaves the company or behaves in a way that is detrimental to the company, they lose that part of the revenue, which increases the cost of leaving the company or "making mistakes". Therefore, the implementation of equity incentive plans is conducive to attracting and retaining talents.

How to design a perfect and scientific equity incentive plan, if 15 you also 12 quasi 3 prepared 81 in 68 enterprises 15 to introduce equity incentive incentives, the middle number can find the teacher.

In order to better attract, motivate and retain employees, many companies have introduced the mechanism of equity incentives, and we often hear this term when we conduct ** transactions, what does equity incentive mean? What are the benefits of equity incentives? Let's take a look.

The benefit of equity incentives for employees is that employees can enjoy part of the shareholders' rights and interests if they are conditional.

Equity incentives are a method of long-term incentives for employees, which falls under the category of option incentives. It is a long-term incentive mechanism implemented by enterprises in order to motivate and retain core talents. Conditionally give part of the shareholders' rights and interests to the incentive object, so that they can form a community of interests with the enterprise, so as to achieve the long-term goals of the enterprise.

I think a reasonable equity incentive is good for the company and employees.

1. Motivate employees and improve performance.

2. Form a community of corporate interests.

3. Contribute to the long-term development of the enterprise.

4. Improve the role of employee welfare, attract and retain talents.

On the surface, the boss has less equity, but the company's performance has improved and become more valuable, which is the charm of equity planning. When used well, it can not only help us retain and attract talents, but also promote performance growth. However, it is undeniable that in reality, there are many cases of CEOs and executives turning against each other due to uneven equity distribution.

How to design the company's equity, we can go to Mingde for consultation. With the mission of "accurately investing in high-quality enterprises and making enterprises become industry leaders", Mingde Tiansheng provides enterprises with all-round and whole-process integrated services such as strategic planning, business operation and IPO listing planning by professionals with rich investment experience, so as to create value with enterprises and promote the rapid development and successful listing of enterprises.

Equity incentives are quite different from spiritual encouragement and monetary rewards, and his incentives for employees are carried out with reward shares.

It is equivalent to tying the enthusiasm of employees with the company's better performance, which is good for listed companies.

As long as the company is profitable, it will generally give you dividends, but if the company has any other strategies, it may not pay dividends.

Consider the case of Huawei, which is not listed but is fully shared. Why are employees willing to invest in shares?

The benefits of equity incentives for employees: the employees who have increased their salary income and can be motivated are the company's management backbone or core technical talents, which is a recognition of the company's own ability.

Huayi Lianchuang is to do equity incentives.

Learn equity incentives - Kedu Niang - Huayi Lianchuang.

To put it simply, you can go from working for your boss to doing it for yourself! Whether there is a bonus or not depends on what kind of incentive method is used. You can consult Shanghai Jingbang in this regard, and they specialize in this aspect of consulting.

There are a lot of imperfect policies and regulations in these aspects of the country, look at the current **... It is recommended to settle in the bag for safety.

1. Several common methods of equity incentives.

1. Performance**;

2. **Options;

3. Virtual**;

4. Value-added rights;

5. Restrictive**;

6. Deferred payment;

7. Employee stock ownership by operators;

8. Management and employee acquisition;

9. The right to increase the book value.

The value of the second head and equity incentives.

For non-listed companies, equity incentives are conducive to alleviating the salary pressure faced by the company. Since the vast majority of non-listed companies are small and medium-sized enterprises, they generally face the problem of capital shortage. Therefore, through equity incentives, the company can appropriately reduce operating costs and reduce cash outflows.

At the same time, it can also improve the company's operating performance and retain core talents with high performance and strong ability.

For the original shareholders, the implementation of equity incentives is conducive to reducing the moral hazard of professional managers, so as to achieve the separation of ownership and management rights. Non-listed companies often have a dominant phenomenon, and the ownership and management rights of the company are highly unified, resulting in the company's three-committee system in many cases. With the development and expansion of the enterprise, the company's management rights will gradually transfer to professional managers.

Since the goals pursued by shareholders and managers are inconsistent, there is a moral hazard between shareholders and managers, and it is necessary to guide and restrict managers' behavior through incentive and restraint mechanisms.

For the company's employees, the implementation of equity incentives is conducive to stimulating the enthusiasm of employees and realizing their own value. One of the biggest problems faced by small and medium-sized enterprises is the mobility of talent. Due to the disparity in treatment, it is difficult for many small and medium-sized enterprises to attract and retain high-quality management and scientific research talents.

Practice has proved that after the implementation of the equity incentive plan, because the long-term value of employees can be reflected through equity incentives, employees' work enthusiasm will be greatly improved, and at the same time, due to the restraining effect of equity incentives, employees' loyalty to the company will also be enhanced.

3. What are the benefits of equity incentives for employees?

1. Establish a community of interests of the enterprise, so that the managers and key technical personnel of the enterprise become shareholders of the enterprise, and their personal interests tend to be consistent with the interests of the company, so as to effectively weaken the contradiction between the two, so as to form a community of corporate interests.

2. Improve performance, so that operators can boldly carry out technological innovation and management innovation, adopt various new technologies to reduce costs, so as to improve the business performance and core competitiveness of enterprises.

3. Restrain the short-sighted behavior of the manager, and ask the operator not only to care about how to improve the performance during the term of office, but also to pay attention to the long-term development of the enterprise, so as to ensure that he can obtain his own deferred income, which can further weaken the short-term behavior of the operator, and is more conducive to improving the ability of the enterprise to create value in the future and the long-term competitiveness.

4. Retain and attract talents, when employees leave the company or have behaviors that are not conducive to the company, they will lose this part of the income, which increases the cost of employees leaving the company or making mistakes.

Equity incentives can allow employees to form a community of interests with the company, retain technical personnel and management personnel, attract high-skilled talents, and stimulate the enthusiasm of employees.

[Legal basis].

Article 142 of the Company Law.

The Company shall not acquire the shares of the Company. However, this does not apply in any of 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.

If the company acquires the shares of the company due to the circumstances specified in items (1) and (2) of the preceding paragraph, it shall be resolved by the general meeting of shareholders; If the company acquires the shares of the company due to the circumstances specified in subparagraphs (3), (5) and (6) of the preceding paragraph, it may be resolved by a meeting of the board of directors attended by more than two-thirds of the directors in accordance with the provisions of the articles of association or the authorization of the general meeting of shareholders.

After the company acquires the company's shares in accordance with the provisions of the first paragraph of this article, if it falls under the circumstances of item (1), it shall be cancelled within 10 days from the date of acquisition; If it falls under the circumstances of items (2) and (4), it shall be transferred or cancelled within six months.

If a listed company acquires the company's shares, it shall fulfill its information disclosure obligations in accordance with the provisions of the ** Law of the People's Republic of China.

The company shall not accept the company's ** as the subject of the pledge.