Equity incentives, as the name suggests, is the enterprise's stock as the subject of incentives, in the enterprise to play a certain role and influence of directors, senior management and other employees, including the setting of a set of targeted from the short-term, medium-term to long-term long-term incentive mechanism. Equity" in equity incentives mainly includes four aspects: stock income, voting rights, ownership and disposal rights. Regardless of whether the enterprise is a non-listed company, a listed company or a listed company, the most fundamental thing to set up the equity incentive program is to balance the incentive compensation structure, incentive goals and incentive time frame. First, the determination of the object of the equity incentive program In addition to Huawei's "quasi" full ownership of the equity incentive model, most of the enterprise equity incentive system to choose the beneficiary object or tendency and target. The focus of these corporate incentives are more around the enterprise directors, senior management and some of the main middle management, in order to be able to better set up the equity incentive program, law firms in the early stages of customized programs for clients, often stationed no less than two lawyers to carry out detailed due diligence on the situation of the enterprise, including the nature of the enterprise, the specific mode of operation, personnel positions, profitability model, etc. to assess and analyze. Evaluation and analysis. Combined with the materials and information from the due diligence investigation, the preliminary equity incentive targets and equity incentive model will be determined. Usually in the technology-based enterprises in the equity incentive program settings, decision makers will choose their own equity incentive center of gravity to the main technical staff to carry out a certain degree of inclination; and sales-oriented enterprises in the equity incentive program settings, will be their own equity incentive center of gravity combined with their own business system (especially the direct system) incentives to the main operators of the enterprise. Second, the setup of equity incentive mechanism Determine the main incentive targets, how to set up equity incentive mechanism is particularly important. If it is a simple "one size fits all", may bring endless trouble. Incentives for the object in the enterprise to play a role, as well as the supply and demand of employees in the talent market, its short-term, medium-term and long-term incentives in the proportion of their remuneration is also a great difference. For the more influential senior management personnel in the enterprise, the long-term incentives should be far more than the short-term incentives, generally should be 2-3 times more appropriate to ensure that long-term "retention" of talent; for the middle management personnel in the enterprise to play an influential role in the enterprise, the enterprise should be more obvious short-term incentives, but also set up some incentives with expectations. At the same time, we should also set up some long-term incentives with anticipation, that is, to ensure that in the short term "retain" talent, but also to stimulate the development of middle-level personnel to the senior management of the enthusiasm. Third, the choice of the basic mode of equity incentives As mentioned earlier, equity incentives are mainly centered on the four basic rights and interests of the stock and derivative rights and interests, so the equity incentive program, although different, but from the basic mode of equity incentives can still be seen in one or two. Currently there are four more common basic forms of equity incentives: real shares, virtual shares, options and option shares. The real share model is essentially the decision maker of the enterprise will be incentivized to transfer all the rights and interests of the stock to the incentive recipients, the incentive recipients can actually enjoy the rights and interests of shareholders. Under the virtual share model, only the proceeds of the shares are paid to the incentive recipient. In the option model, the company grants the incentive recipient the option to purchase a certain number of shares of the company at an agreed-upon exercise price within a specified period of time. The option model is that the enterprise requires the incentive object to obtain the enterprise's shares in installments at the agreed price with a certain amount of entitlement (including personal property, enterprise loans, salary bonuses). Fourth, equity incentives - in addition to will give, but also will collect In the era of the blossoming of start-ups, more attention is often focused on how to carry out equity incentives, give which employees equity incentives, but it is easy to ignore the staff leave, performance is not up to standard, how to recover the incentive equity. A complete equity incentive program, in addition to the fine design of equity incentives specific incentives, incentives, exercise conditions, equity incentives to exit the same is an important part of the indispensable.