ESOP employee stock ownership plan is a long-term incentive mechanism, which takes the company's stock as the subject matter and aims to motivate the company's management and employees.
For the company, the benefits of equity incentive are:
Equity incentive can support the implementation of the strategy and realize the company's long-term goals.
Equity incentive can meet the needs of rapid development and capital operation.
Equity incentive mechanism can help enterprises attract new talents and retain core talents.
For employees, the benefits of equity incentive are:
Equity incentive can bring long-term and imaginative benefits to employees. By accepting equity incentives, employees can improve their salary level.
Equity incentive can change employees' identity from "migrant workers" to "co-entrepreneurs", which can improve employees' sense of belonging and identity to the company.
Futu comfort experts believe that the design purpose of ESOP is to achieve "maximum shareholder value and win-win for employees and enterprises".