What is the difference between the lock up period and the duration of equity incentives of listed co

1. Duration: refers to the employee stock ownership plan.

The effective time, such as 24 months, after 24 months, the employee stock ownership plan will be automatically terminated (asset management institution B will be executed within 15 working days after the expiration of the period) liquidation, i.e. all shares**, cash distribution to employees holding shares), can also be in accordance with relevant laws and regulations.

and contract for early termination or renewal (If the renewal period is made, the employee may wait for a certain day of the opportunity during the renewal period.) ）。2. Lock-up period:

Generally speaking, during this period, such as 12 months, the ** of the target held by the employee cannot be sold. Once the lock-up period ends, you can decide when to sell** based on the market conditions at the time.

In addition to this, there is also an unlocking period, which refers to the time when the ESOP unlocks itself. During this time period, the underlying ** of employee ownership can be freely traded in the market. The so-called unlocking period is a lock-up time, the longer the lock-up time, the longer the shareholding plan, which is good news for long-term holders, because after unlocking, if no investment is made, the number of shares will be held until the end of liquidation.

Continue to hold the underlying **, but cannot sell it. Because the market is determined, investors can sell without considering their holdings, even after the lock-up period.

Employee stock ownership plan, within 6 months before the expiration of the duration, if it is not a major asset restructuring of the listed company.

There will be no unlocking period. During the duration period, employees who do not meet the unlocking conditions specified in the notice or whose existence period has not expired for 12 months shall still hold shares according to the stock ownership plan within 3 months after the expiration of the existence period.

The industrial stock ownership plan is a public offering and can be invested, but it is not a private placement.

nature, however, if the ESOP investment is publicly offered**.

Proprietary, then all the ** held by the employee belong to the public offering** patent, and it does not belong to the private placement.

The simplest difference is that the duration period is that after this period, you will no longer have this ** share, and after the lock-up period, you will have the right to transfer this part of the shares.

The lock-up period means that you cannot sell shares for an agreed period, and you can only sell them after the expiration date. Duration refers to the period during which your shares are valid and expire after the expiration date.

A lock-up period is a limited** period of time that can be sold after expiration. The duration refers to the validity period of the stock ownership plan, after which it will be invalidated.

**The duration of the ESOP is quite a restricted share. **Just listed, the ** held by employees will definitely have a large increase, and there will be employees who want to arbitrage****, which will affect the ** that has just been listed**.

The lock-up period refers to a period of time during which the shareholder cannot transfer the ** held by the shareholder within a certain period of time.

The employee stock ownership plan is generally that company A entrusts an asset management institution B to manage and fully subscribes to a directional asset management plan established by B, and the investment scope of the asset management plan is to purchase and hold company A's **.

Employee stock ownership plans generally have two periods: duration and lock-up period.

1.Duration: refers to the effective time of the employee stock ownership plan, such as 24 months, then after 24 months, the employee stock ownership plan will be terminated by itself (asset management institution B will liquidate within 15 working days after the expiration of the duration period, that is, sell all **, and then distribute the cash to the employees holding the shares according to shares), or it can be terminated or extended in advance in accordance with relevant laws and regulations and the contract (if the extension period, the employee can wait for the opportunity to sell it on one day during the extension).

2.Lock-up period: Generally speaking, it means that during this time period, such as 12 months, the ** held by the employee cannot be sold. After the lock-up period expires, you can decide when to sell** based on the market conditions at the time.

The duration is longer than the lock-up period.

Yes. The extension of the lock-up period for shareholders is good news for the company, indicating that the management has sufficient confidence and the subsequent development is promising. The lock-up period is designed to reduce exposure to the secondary market.

or protect the fair rights of other small and medium-sized investors, and restrict some investors from being in the market for a certain period of time.

The act of transferring shares of a listed company. The limited time is the lock-in period.

Extended Information; Shares, which represent partial ownership of a company, are divided into common shares.

Preferred shares, equity that has not been fully paid. Shares generally have the following three meanings: 1. Shares are the constituent components of the **** capital of shares; 2. The shares represent the rights and obligations of the shareholders of the shares; 3. Shares can be passed through ****.

form of expression of its value.

The amount of shares, the capital of shares is divided into shares, and the amount of each share is equal, that is, the shares are a reflection of a certain value and can be measured in money; equality of shares, i.e., each share of the same type should have equal rights; The indivisibility of shares, that is, shares are the most basic constituent unit of the company's capital, and each ** share cannot be redivided.

The transferability of shares, that is, the shares held by shareholders can be transferred in accordance with the law. The shares of shareholders can be transferred, and the "Equity Transfer Agreement" needs to be signed, and the process of share transfer involves tax and fee issues. During the share transfer process, the transferor needs to pay various taxes and fees.

If the transferor is an individual, individual income tax is payable.

Pay at 20%. If the transferor is a company, there are more taxes and fees involved, as detailed in the reference material "Tax Treatment of Company Share Transfer".

The pledge of shares refers to the pledge of shares that can be transferred in accordance with the law and the creation of pledges.

The pledge of shares shall be signed in writing, and in the first registration agency Kairanghuai for pledge registration, the pledge contract shall take effect from the date of registration.

Shares shall not be transferred after being pledged, except with the consent of the pledgor and the pledgee. With the consent of the pledgee, the price obtained by the pledgee from the transfer of shares shall be paid off in advance to the pledgee or deposited with a third party agreed with the pledgee. However, the Company shall not accept the Company's ** as the subject matter of the pledge.

The cancellation of shares refers to the reduction of part of the company's shares in accordance with the issuance procedure. The total cancellation of the company's shares occurs only when the company is dissolved. In addition, the purpose of canceling shares can also be achieved through the repurchase of shares and the merger with the company that holds the company's **.

The modern experience grows with the scale of the enterprise.

Increasingly, there is a separation of powers, that is, ownership and management are separated. Many owners of enterprises out of their own ability, will set up some professional managers to manage the company for themselves, but at this time there will be a problem, how to make these people really from the perspective of the interests of shareholders has always been a controversial topic. In order to solve this problem, many people have proposed an employee stock ownership plan.

In this way, the interests of managers and shareholders are aligned. In an employee stock ownership plan, there are two periods, one is the duration period and the other is the lock-in period, so what are these two periods? Let's take a look.

1. Lock-up periodAccording to the above, we know why there is such a reason for the emergence of employee stock ownership incentive plans, one of his main purposes is to let shareholders and employees work hard for the company's consistent goals, and at this time, it is necessary to motivate employees and shareholders to align their interests in many ways.

This is how the employee stock ownership incentive plan appeared, but in order to prevent short-term behavior of employees, a lock-up period will be set when exercising rights, and during this lock-up period, employees cannot exercise their rights. The option can only be exercised after the lock-up period has expired.

3. What does the lock-up period mean? Another key definition is duration, all emotions actually refer to the effective time of the employee stock ownership plan, for example, some companies will issue ** for 24 months, then after 24 months, the employee stock ownership plan will be terminated by itself.

Therefore, in layman's terms, the meaning of this duration is equivalent to saying yesShelf lifeAfter this period, the plan will be terminated. But employees can also be based on the relevantLaws and Regulations, or you agreed in advance to terminate early, or ratherRollover

3. During the service period, the company issues an employee stock ownership plan, and many times it will also bring some requirements or conditions, such as requiring employees to continue to serve the company for three years, which is actually a requirement for them, and within these three years, many enterprises will require employees not to exercise their rights. In fact, this is also to protect the legitimate rights and interests of the company.

In the case of the lock-in period, your access to the bank is not too convenient and requires more surgery, while the duration period is more flexible and subject to fewer constraints, and you can arrange it freely.

Generally, the lock-up period is the period of partial restriction of sales in the process of subscription, and after the end of the period, the ** ticket can be sold; However, the duration refers to some of the validity periods in other stock ownership plans, after which they will be invalidated.

Duration is the concept that characterizes the main temporal characteristics of cash payment flows, which is superior to maturity periods. That is, the ratio of the total weighted present value of the cash flow to the total present value. The longer the duration, the more sensitive the bond** is to changes in interest rates.

Duration is different from the maturity of a bond, which to some extent also reflects the sensitivity of the bond to interest rate risk, all other things being equal, the longer the maturity.

Subscription lock-up period, that is, the restricted period of the part of the subscription, which can be sold after the restricted period. The duration of the shareholding plan, i.e. the validity period of another investment shareholding plan, expires after the duration of the shareholding plan.

Hello, I am glad to serve you, and I would like to answer the following questions for you: the lock-up period of equity incentive is calculated from the beginning of the listing of the company, and generally speaking, the length of the lock-up period of equity incentive is determined by the company itself, generally 1-3 years. Causes of the problem:

1.The company did not carry out the incentive in accordance with the prescribed lock-up period, resulting in the lock-up period of the equity incentive not being effectively implemented. 2.

The company did not carry out the incentive in accordance with the prescribed lock-up period, resulting in the lock-up period of the equity incentive not being effectively implemented. Workaround and practice steps:1

First of all, the company should clarify the length of the lock-up period of the equity incentive and write it into the company's articles of association for better implementation. 2.Secondly, the company should establish a complete management system for the lock-up period of equity incentives, including the setting, implementation, supervision and assessment of the lock-up period of equity incentives, so as to ensure the effective implementation of the lock-up period of equity incentives.

3.Finally, the company should regularly supervise and assess the implementation of the equity incentive lock-up period to ensure the effective implementation of the equity incentive lock-up period. Personal Tips:

1.The lock-in period of equity incentive is an important part of the company's equity incentive and should be taken seriously. 2.

The company should establish a complete management system for the lock-up period of equity incentives to ensure the effective implementation of the lock-up period of equity incentives. 3.The company should regularly supervise and evaluate the implementation of the equity incentive lock-up period to ensure the effective implementation of the equity incentive lock-up period.

The lock-up period of equity incentive is set by the enterprise, and the lock-up period of equity incentive cannot be transferred, extorted, guaranteed or repaid. In this way, the incentive person cannot use the equity to cash out and obtain benefits from other places, but can only form a community of interests with the enterprise.

[Legal basis].

Article 2 of the Full Text of the Measures for the Administration of Equity Incentives of Listed Companies.

The term "equity incentive" in these measures refers to the long-term incentive of a listed company to its directors, senior managers and other employees with the company as the target.

If a listed company implements equity incentives with restricted options or options, these Measures shall apply; Where equity incentives are implemented in other ways permitted by laws and administrative regulations, they shall be implemented with reference to the relevant provisions of these Measures.

Article 14. Listed companies can implement multi-period equity incentive plans at the same time.

If a multi-period equity incentive plan is implemented at the same time, the performance indicators of the companies established in each phase of the incentive plan shall be comparable, and the performance indicators of the company in the later incentive plan shall be lower than those of the previous incentive plan, and the listed company shall fully explain the reasons and reasonableness in the draft.

The total number of targets involved in all equity incentive plans of listed companies within the validity period shall not exceed 10% of the total share capital of the company. Unless approved by a special resolution of the general meeting of shareholders, the cumulative amount of the Company** granted to any incentive recipient through all the equity incentive plans within the validity period shall not exceed 1% of the total index amount of the company's share capital.

Legal analysis: The lock-up period of equity incentives is set by the company, which is generally between 1 year and 3 years. During the lock-up period of the equity incentive, it is not allowed to transfer, ** incentive equity, guarantee or repay debts.

The purpose of the lock-up period is to prevent the incentive recipient from engaging in actions that harm the company's interests for the sake of short-term arbitrage.

Legal basis: Article 13 of the Full Text of the Measures for the Administration of Equity Incentives of Listed Companies The validity period of the equity incentive plan shall not exceed 10 years from the date of the first grant of rights.