Equity incentive, also known as employee stock ownership plan, refers to attracting, retaining and motivating company employees, so that employees can participate in the company's benefit sharing mechanism and business decision-making mechanism by letting employees hold shares.
In the process of incentive practice, different genes of enterprises have different opinions, including the choice of incentive tools, the scale of issuing incentives and so on.
Long-term equity incentive plan cannot be generalized. A complete equity incentive plan, including scheme design, trust &; Tax planning, data management and exercise.
In the initial stage of the company, the internal management system is not perfect, and the number of employees is small at this time. The founder has a clear understanding of the work functions and working conditions of employees. At this time, the number of people to be encouraged and awarded can be decided by the founder according to the importance and performance contribution of the people to be encouraged.
With the development of the company and the increasing number of employees, the founder can't know the working ability and performance of each employee. At this time, it is necessary to determine the number of awards with the help of a scientific and reasonable calculation method. The common practice is to make adjustments based on the rank system.