The four main modes of equity incentives

1. Dividend rights Dividend rights is a mode of equity incentive used by many growing companies, and he also has a more familiar name called dry shares. We often hear people say, the boss to give him how much how many dry shares

2. value-added rights This way is suitable for the more stable earnings of the enterprise, if the enterprise to become the industry's leading enterprises, the future to go public, this time the profits can not be all part of the fall, to be set aside as a need for future development.

3. Real shares Simply put, this is the current period to the employee's equity shares, but employees have to sell if there are conditions to limit the conditions, this condition generally refers to the company's performance conditions, if not to meet the conditions, as agreed to deal with

4. Option incentives This model is mostly applicable to listed companies. Incentive recipients have the right to purchase a certain amount of equity in the company at a pre-determined price and under certain conditions within a certain period of time in the future

I. Equity incentives are a method by which companies take out a portion of their equity and use it to incentivize senior management or outstanding employees. Generally speaking, it is a conditioned incentive, such as employees need to work in the enterprise for a number of years, or to complete a specific goal to be incentivized, when the incentivized personnel to meet the incentive conditions, you can become a shareholder of the company, so as to enjoy the rights of shareholders.

In the early stages of a startup's development, funds are tight, and the lack of funds brings one of the biggest problems, which is the loss of personnel, especially the team's senior management, core staff, and their loss will cause an immeasurable impact for the startup. In order to improve team cohesion, with limited salary to retain management and core staff, entrepreneurs racked their brains, slowly studied the company's equity as the subject, to the company's senior management and core staff, including other members of the long-term incentive system, that is, equity incentives.

1, option model stock option model is one of the most classic and widely used international equity incentive model. The content of the main points are: the company agreed by the shareholders' general meeting, will be reserved for the issue of ordinary shares not publicly listed stock options as part of the "package" of compensation, with a pre-determined price of a certain option conditional gratuitous grant or award to the company's senior management and technical backbone, stock options can be entitled to the specified period of time to make the exercise, cash and other options. Stock option holders can choose to exercise or cash in their options within a specified period of time. The design and implementation of the stock option model requires that the company must be a publicly traded company, have a reasonable and legitimate source of stock for the implementation of stock options, and have a capital market carrier whose stock price can basically reflect the intrinsic value of the stock, and whose operation is relatively standardized and in good order. Lenovo Group and Founder Technology, which have been successfully listed in Hong Kong, have implemented the stock option incentive model.

2, restricted stock model restricted stock refers to the listed company in accordance with pre-determined conditions to grant incentive recipients a certain number of the Company's shares, incentive recipients only in the work years or performance objectives in line with the conditions set out in the equity incentive plan, you can sell restricted shares and benefit from them.