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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.
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Equity incentives to pay for themselves; When listed companies implement equity incentives, they are all exercised, and if they are lower than the market price, they will be cancelled or lowered. Equity incentive is an incentive method that gives certain economic rights to business operators in the form of obtaining the company's equity, so that they can participate in corporate decision-making as shareholders, share profits and take risks, so as to serve the long-term development of the company diligently and responsibly. Among the different incentive methods, the salary is mainly determined in advance according to the manager's qualifications, the company's situation and target performance, which is relatively stable in a certain period of time and has a very close relationship with the company's target performance.
Bonuses are generally used to determine the manager's income based on the assessment of the performance beyond the target, so it is closely related to the company's short-term performance, but it is not obviously related to the company's long-term value, and the manager may sacrifice the company's long-term interests for the sake of short-term financial indicators. But from a shareholder investment perspective, he is more concerned with increasing the company's long-term value. Especially for growing companies, not just the achievement of short-term financial metrics.
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Equity incentives, also known as option incentives, are a long-term incentive mechanism implemented by enterprises in order to motivate and retain core talents, and are one of the most commonly used methods to motivate employees.
Equity incentives are mainly used to give employees part of their shareholders' rights and interests conditionally, so that they have a sense of ownership, so as to form a community of interests with the enterprise, promote the common growth of the enterprise and employees, and help the enterprise achieve the long-term goal of stable development.
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Those who spend money are more attentive than those who don't. You take a look at the [Evergreen Distribution Mechanism].
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[Viewpoint].
When an enterprise introduces equity incentives, it must let employees pay for it!
[Reason].
Employee equity incentives are like chasing girls, why girls should be reserved, this is the characteristic of human nature, when a man is very hard to pursue a girl, the man will love her for a period of time, because he has paid.
On the other hand, girls chasing boys are the same, if you easily give the equity to others, he will be grateful to you for a short time, but after a long time, he has no pressure, at the beginning of the equity should also have debts, the employee's own money has not been put in, and the debt has nothing to do with him.
Therefore, equity incentives are not only incentives, but also deposits and investment statements from the perspective of management psychology. Unless the employee has a very grateful heart and you know him very well, don't give away equity easily, even if the boss lends money to the employee to buy it.
Pay money to give heart!
If you are preparing to introduce an incentive mechanism in the company, and want to learn how to design 16 equity, 8 incentives, and 15 incentive programs in the middle of the 15 series, you can find a teacher in the middle.
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Whether the company's equity incentive should be bought or not, the nature of the company's equity should be considered, as well as the mold of the company's equity incentive. The company's equity incentive refers to a long-term incentive mechanism set up by the company in order to motivate or retain the company's core talents.
Legal basis] Article 125 of the Company Law, the capital of the shares is divided into shares, and the amount of each share is equal. The company's shares take the form of **. ** is a certificate issued by the company certifying the shares held by the shareholder.
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Since equity incentives are a long-term reward for delayed gratification, companies need to make employees truly recognize the value of equity if they want to achieve the desired results.
For employees, there are three main points of concern: first.
1. What is the value of the equity they can get? Second, when will these shares be realized? Third, what are the risks?
In the real case, Futu Anyi found that most companies did not give employees good answers to the above questions, which led to confusion among employees who got equity and no way to give feedback.
Due to the lack of comprehensive and effective information, many employees are suspicious and have unreasonable expectations, which ultimately affects the implementation of the incentive plan.
This can lead to two outcomes.
One is that employees have too low expectations for the value of equity, they feel that this is a piece of cake drawn by the company, and they don't care, so they won't work hard for this right.
The other is that employees have too high expectations about the value of equity, thinking that financial freedom is close at hand, and only to find that they have been "cheated" when the company goes public, so they are dissatisfied.
Three key points make the value of equity incentives visible.
The above results are something we don't want to see, but they often happen. Therefore, equity incentives must not be self-congratulatory, and if you want to truly achieve the effect, you need to do the following:
The first point is to have a sense of ceremony when awarding.
The second point is to do a good job of information synchronization and expectation management after granting.
The third point is to let employees really eat the cake through buybacks.
After the above steps, employees can not doubt, ignore, or misunderstand, correctly understand the value and significance of equity, and have the motivation to stand with the company and charge forward together.
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Unreliable; From a certain point of view, it is a pie, and the probability of realization is very low.
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If the company implements equity incentives in a scientific and reasonable way, it can effectively stimulate the enthusiasm and creativity of employees, and greatly improve the work enthusiasm of employees and the company's business performance. However, if the company does not implement it properly, such as the shares granted are too diluted, the incentive effect will be reduced, and the motivation and creativity of employees may be eroded.
Therefore, for employees, whether the equity incentive plan is reliable depends on the specific way of implementation of the company, and employees need to carefully analyze the specific equity incentive terms and the company's operating conditions, and make a decision after comprehensive consideration.
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Legal Analysis: Equity Incentive Employees Have to Pay Money. The incentive object is that the employee can purchase a certain amount of the company's circulation in a predetermined ** within a specified period of time, and then participate in corporate decision-making, share profits, and bear risks as shareholders.
Legal basis: Company Law of the People's Republic of China
Article 27 Shareholders may make capital contributions in monetary terms, or in kind, intellectual property rights, land use rights, and other non-monetary assets that can be valued in monetary terms and transferred in accordance with law.
Article 34 Shareholders shall receive dividends in accordance with the proportion of their paid-in capital contributions; When the company imitates the new capital, the shareholders have the right to subscribe for the capital contribution in accordance with the proportion of the paid-in capital contribution. However, all shareholders agree not to distribute dividends in accordance with the proportion of capital contribution or do not subscribe for capital contribution in priority according to the proportion of capital contribution.
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In the ** market, equity incentives require employees to pay to buy, and employees buy real shares and registered shares that belong to the company.
Usually, the equity incentive system allows employees to obtain the equity of listed companies, giving employees certain economic rights. Enable employees to participate as shareholders in corporate decision-making, profit sharing, and take operational risks. It is a system in which employees' own interests are more consistent with the interests of the enterprise to a greater extent, so that employees can serve the long-term development of the company more diligently and responsibly.
Equity incentives are conducive to improving the company's governance structure, reducing costs, improving management efficiency, enhancing company cohesion, and improving market competitiveness. Such a system can not only help enterprises retain talents, but also motivate the company's performance, and also increase the company's funds.
In general, common equity incentive methods include restricted equity, equity options, employee stock ownership plans, indirect shareholding, etc. Among them, the most common is the employee stock ownership plan for equity incentives. Employee stock ownership plan refers to the institutional arrangement of the listed company according to the wishes of the employees, through the legal Fang Sui filial piety style to enable the employees to obtain the company's ** and hold it for a long time, and the share rights and interests are distributed to the employees according to the agreement.
The company can manage the company's employee stock ownership plan by itself, or it can entrust the company's employee stock ownership plan to other institutions with asset management qualifications for management.
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Whether to buy the company's equity incentive or not, it is necessary to consider the nature of the company's equity and the mode of the company's equity incentive. Company equity incentive refers to a long-term incentive mechanism set up by the company in order to motivate or retain the company's core talents.
1. Should performance bonuses be made public?
Performance award refers to the bonus paid by the enterprise to motivate employees to achieve a certain performance. Of course, performance awards also include monetary and non-monetized rewards. Everyone's aspiration is different, so the implementation plan of the performance award is also ever-changing.
The disclosure of performance bonuses depends on the company's rules and regulations.
2. What is the difference between the first shareholder and the second shareholder?
Difference Between First Shareholder and Second Shareholder:
1. The shareholding ratio is different. The capital contribution of the first-level shareholder generally accounts for more than 50% of the total capital of the limited liability company, while the second-level shareholder generally does not have the above requirements.
2. The meaning is different. Primary shareholders refer to shareholders who directly hold the company's equity, while secondary shareholders refer to shareholders who are primary shareholders and shareholders who indirectly hold the company's equity.
3. What is the unreasonable shareholding structure of the company?
The unreasonable shareholding structure of the company includes:
1. The shareholding ratio is too even.
2. Husband and wife shareholders.
3. Excessive concentration of equity.
4. The family business is looking for someone to be the nominal shareholder.
5. Foreign-funded enterprises, state-owned enterprises and special potato industry shareholders have special regulations, and it is illegal to hold them on behalf of them.
6. Disputes over dry shares, free shares, and equity incentives.
7. Employees do not register their shares.
Article 125 of the Company Law states that the capital of a share is divided into shares, and the amount of each share is equal. The company's shares take the form of **. ** is a certificate issued by the company certifying the shares held by the shareholder.
The equity incentive plan should be set up in this way.
Hello, equity incentives are long-term incentives for employees. There are other options for this. >>>More
Legal analysis: First of all, it is necessary to select the incentive object, and the equity incentive should give enough attention to the talent at the strategic height, so as to make a significant contribution to the development of the company; Secondly, before the old age, the incentive shares should be granted in installments, and a certain proportion of equity will be granted to the incentive object in each period; Thirdly, as an additional condition, the incentive object must complete the corresponding assessment indicators every year, and set up the equity treatment opinions in the case of failure to achieve the goal, serious dereliction of duty, etc. >>>More
Based on your question, Huayi Zhongchuang hereby gives the following: >>>More
Lai Yi) Generally, start-ups take out no more than 30% of the total amount of equity incentives, and 30% refers to the total amount of listing, so within 10% at the start-up, and 20% in turn in the later stage, of course, depends on the specific situation