The incentive object of the equity incentive plan must be employees of the company, and the specific object is determined by the company according to the actual needs, which may include directors, supervisors, senior managers, core technical (business) personnel of listed companies and other employees that the company thinks should be encouraged (among them, in order to ensure the independence of independent directors, it is clearly stipulated in the officially promulgated Measures that the incentive object should not include independent directors), but people with tainted records cannot be the incentive object. Combined with the previous provision, we find that all companies and individuals who violate the law and regulations are not taken care of by the equity incentive mechanism, which shows that the purpose of the equity incentive mechanism is to promote the superior and eliminate the inferior. From a microscopic point of view, the implementation of equity incentive for individual or group executives of the company is to make them wholeheartedly focus on production and operation, so that the company's operating performance can be really improved. The quality of each listed company is improved, and the overall quality of the natural stock market is also improved.

In terms of stock sources, the Measures specify three sources: issuing shares to the incentive object, repurchasing shares of the Company and adopting other methods permitted by laws and administrative regulations. For a long time, the source of stock is the biggest problem that puzzles listed companies to implement equity incentive. With the revision of the new Company Law, breakthroughs have been made in capital system and stock repurchase of companies, which finally eliminated the legal obstacles for listed companies to implement equity incentive. These sources are simple and clear, which is beneficial to both management supervision and shareholders supervision, and does not give loopholes to people who use their brains.

In terms of the number of shares, it is stipulated that the total number of shares involved in all effective equity incentive plans of listed companies should not exceed 11% of the total issued share capital. In principle, the portion granted to individuals shall not exceed 1% of the total share capital, and the portion exceeding 1% needs special approval from the shareholders' meeting. It can be seen from this that the management still focuses on incentives, but the different sizes of specific companies may still cause some problems. For example, some state-owned large-cap stocks, even 11% will be an astronomical figure, while for some smaller companies, 11% is probably not enough.

In terms of the conditions for implementing equity incentive, it is clear that equity incentive is not unconditional. For directors, supervisors and senior managers, listed companies should establish performance appraisal systems and methods, and take performance appraisal indicators as the conditions for implementing equity incentive plans.

in addition, the "measures" also make detailed provisions or explanations on the matters and contents that should be included in the equity incentive plan, which provides a standard for listed companies on how to disclose information on the equity incentive plan.