What are the equity incentives?

Common equity incentives are as follows:

1, stock options. It is the right to allow the incentive object to buy a certain number of company shares when the future conditions are ripe.

2. Restricted stocks. When the performance target is achieved, the company will sell a certain number of its shares to the incentive object for free or at a low price.

3. stock appreciation rights. The company grants the incentive object the right to enjoy the rising income of stock price within a set time limit.

4. Dividend sharing right/virtual stock.

legal ground

Article 14 of the Implementation Measures for Equity Incentives of State-controlled Listed Companies (Domestic)

The total amount of equity granted within the validity period of the equity incentive plan shall be reasonably determined between 0. 1%- 10% in combination with the share capital scale of the listed company, the scope of equity incentive objects and the level of equity incentive. However, the total number of underlying stocks involved in all effective equity incentive plans of listed companies shall not exceed 65,438+00% of the company's total share capital.

In principle, the number of shares granted when a listed company first implements the equity incentive plan should be controlled within 1% of the total share capital of the listed company.

Article 15

The equity granted by a listed company to any incentive object through all effective equity incentive plans shall not exceed 65,438+0% of the company's total share capital, unless it is approved by a special resolution of the shareholders' meeting.