Equity incentives, where does the cake come from?

Due to the greed of people's hearts, the boss of the company generally likes to share the money when it loses money, and when the company really makes money, it does not divide it

The ** incentive equity of non-listed companies is mainly the equity or shares formed by the company's capital increase (issuance of new shares), the shares repurchased by the company, and the equity or shares transferred by shareholders.

In the above methods, the issuance of new shares or capital increase is adopted, and the incentive object subscribes for the company's new shares or participates in the company's capital increase, which can increase the company's liquidity and reduce the company's operating pressure; The use of the company repurchase method not only requires the company to come up with funds, but also causes a decrease in the company's total share capital, but will relatively increase the company's profit per share.

From the additional issuance, the money is conjured out of thin air.

"Out of nothing" came out.

The specific practice of non-listed **** is:

1.First determine whether it is a registered share or a virtual share, and if it is a virtual share.

2.First, determine how much money the company's profits will be used for equity incentives. (e.g. 1,000,000 RMB)3You can virtually issue 1 million shares at 1 yuan per share.

4.Each position score is evaluated by Hai's Position or Mercer Position.

5.Calculate the proportion of virtual shares occupied by each position through the relevant formula.

6.Performance Package.

7.Preparation of various documentation agreements.

8.Do the full equity incentive meeting, granted.

The general process of the above Shenzhen Yunhe consultation).

Listed companies that implement equity incentives are generally common.

Within the directional issuance, large capacity.

Shareholders transfer and repurchase to the secondary market as equity incentives. The company's capital can be increased through private placement; Through the transfer of major shareholders, major shareholders can also invest partially. However, under the full circulation model, if the equity is too dispersed and the equity ratio of the major shareholder is low, then whether it is a private placement or a major shareholder transfer, it is possible to further reduce the equity ratio of the major shareholder, weaken its control over the company, and increase the risk of being acquired.

Repurchase from the secondary market, as adopted by Vanke, is that the company withdraws the reward for the increase in the annual net profit according to the proportion of the increase in net profit, entrusts a third party to repurchase the company** from the secondary market, and grants the incentive object free of charge if the conditions set by the incentive plan are met; The other is what most listed companies that have implemented equity incentives have adopted, that is, with reference to the market, requiring the incentive recipient to pay cash to obtain the company's equity. For Chinese companies like Blue Sky, due to regulatory restrictions, the current feasible equity incentives need to be transferred by the boss. The first solution is to separate the rights and interests of the company, the right to dispose of assets, the right to vote, the right to dividends, the right to benefit from fluctuations, etc., and only conditionally transfer the "right to benefit from fluctuations" to the equity incentive object of the enterprise.

Equity incentives for Chinese enterprises are spearheaded by overseas-listed Chinese enterprises.

2. Equity transfer: The original shareholders transfer a part of the equity to the equity incentive object.

3. Repurchase of employees' withdrawal shares: Some employees withdraw due to resignation and other reasons, and the withdrawal part can be re-granted to other employees.

Let's see how the specific incentive agreement is stipulated.

There are generally two ways. First, the company issues a new **. The second is that the company uses its own ** or buyback in the secondary market to deal with the exercise.

These should be the company's fictitious shares, also known as virtual shares, the company gives employees to buy ** is generally lower than the ** sold to non-enterprise employees, which is equivalent to the exercise of employees. For details, you can refer to the Marine Advisory Network, I hope it will be helpful to you.

There is also a "company buyback**" trick in the market.

The total share capital of the extra company has increased.

Generally speaking, it is deducted from the shareholders.

The provident fund is increased and the remaining profits are distributed.