What conditions are required for the implementation of an equity incentive planCase study

1. What are the common incentive methods in the equity incentive plan?

The four most common ways of equity incentives:

1) ** Options;

2) Restrictive**;

3) ** Value-added rights;

4) Virtual equity.

2. Who is the incentive object in the equity incentive case?

To confirm the incentive qualifications, it should be examined from three aspects: the added value of human capital, historical contribution, and the degree of difficulty in substitution.

From the perspective of added value of human capital, the incentive object should be able to have a significant impact on the sustainable development of the company in the future. From the perspective of historical contributions, the incentive object should have made outstanding contributions to the company's past business performance growth or management ability improvement. From the point of view of the degree of difficulty in substitution, the incentive targets should include those special human capital holders who have mastered core trade secrets and proprietary technology.

According to the above principles, we divide the company's incentive objects into three levels: the first level is the core level, which is the company's strategic decision-makers, accounting for about 1-3 of the total number of employees; The second level is the management level, which is the manager who holds the position of department manager or above, and the number of employees accounts for about 10; The third level is the backbone layer, which is the holder of special human capital, which accounts for about 15 of the total number of employees.

3. How to determine the exercise period in the equity incentive plan?

The validity period of the equity incentive plan shall be calculated from the date of approval by the general meeting of shareholders and shall generally not exceed 10 years. Upon the expiration of the validity period of the equity incentive plan, the listed company shall not grant any further equity according to the plan. The incentive plan can then be re-established.

If the expiration of the incentive plan is not exercised by the option owner, it will be deemed to be abandoned.

4. In the equity incentive plan, how should the exercise of rights** be set?

The exercise price of non-listed companies is much more difficult to determine because there is no corresponding **market** as the basis for pricing. The usual method is to evaluate the value of the enterprise to determine the intrinsic value of each equity and use it as the basis for the exercise price and ****. There are generally three solutions:

The first is the principle of net assets per share (per contribution); the second is the principle of intrinsic value per share (per contribution); The third is the principle that the par value of each share (each contribution) is the original price.

5. How should the number of incentive equity be determined in the equity incentive plan?

China has clear regulations on listed companies:

1) The cumulative equity of the Company granted to any incentive recipient of Yinqi listed company through all effective equity incentive plans shall not exceed 1 of the total share capital of the Company, except for those approved by a special resolution of the general meeting of shareholders.

2) During the validity period of the equity incentive plan, the expected income level of individual equity incentive for senior managers shall be controlled within 30% of the total remuneration level (including expected options or equity returns). The total level of remuneration of senior management personnel shall be determined with reference to the principles and regulations of the State-owned assets supervision and administration institutions or departments, and in accordance with the performance appraisal and remuneration management measures of listed companies.

Further reading: Things to pay attention to when implementing equity incentives.

1) Enterprises should share the value-added part with talents, and realize the value-added and personal efforts.

2) Choose the right person, pay attention to the selection of equity enjoyment personnel.

3) Enterprises should design a reasonable exit mechanism.

How is it like to work at this company? I've been working in this company for more than a year, and it feels good, but it's quite challenging for me. If you want to work in this company, you must first understand what it does and what the business model is.

The predecessor of this company is actually Antarctic, the company is headquartered in Shanghai, is a listed company focusing on brand authorization, e-commerce industry chain ecological services, and the development prospects are very good.

The company's main brand Antarctic people take the family as the scene, and provide consumers with the ultimate cost performance, penetrating the consumption level and consumption cycle of personalized basic products through e-commerce channels such as Alibaba, JD.com, Pinduoduo, and Vipshop. In addition to thermal underwear, many brands needed for life, such as men's **, outdoor, bags, shoes, home textiles, small household appliances, etc., are basically covered by Antarctic people, and the brands are getting closer and closer to the needs of modern young people, fashionable and trendy.

In fact, the company's strength can be clearly seen from the company's sales performance of 618 this year. How is it like to work at this company? Let's just say that this time to prepare for 618, the whole company has riveted up and down, but fortunately, the hard work pays off.

On the battlefield of 618 Douyin, the sales volume of the Antarctic brand has always been in the lead, and finally ranked first with a cumulative sales of 10,000, more than 5 million more than the second place on the list, and the sales volume exceeded 4 million pieces from May 25th to June 7th, ranking first in the industry, these data are quite exciting.

Recently, the company's repurchased shares have been announced to be mainly used for the follow-up implementation of equity incentives or employee stock ownership plans, and the incentive plan assessment is divided into two levels, namely company-level performance appraisal and individual-level performance appraisal. After hearing this news, everyone's enthusiasm for work was mobilized in an instant, and they were more confident in the future development of the company.

So don't ask how it's like to work in this company? As young people in the new era, we must first ask ourselves what we want in the future and what kind of goals we have. This company is a great exercise ground, join in and work towards your goal!

You're one step closer to success.

If the equity incentive designer is like a troublemaker, he should first pay attention to the definition of identity, but also pay attention to the recognition of the rubber judgment strategy, the division of labor of Ren Zai, the confirmation of assessment points, and the confirmation of core shareholders.

Identity definition, Liang Feng's strategic identity, must be supported by the people behind him, standing on the same strategic decision-making, task division and assessment point confirmation, this is very important, to cooperate with each other Sen Xiao happy, but also to confirm the core shareholders.

Identity definition, strategic recognition of the same age as Gao Tang, task division and assessment point confirmation, confirmation of core shareholders, only these 4 points are done well, can you design a very good plan for Qi Xiaotuan.

The design of equity incentive plan refers to the design of an incentive plan in which employees can enjoy certain economic rights in the form of obtaining the company's equity, 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 equity incentive system arrangement necessary for the development of the company.