"Equity incentive?" Everyone's eyes were shining and turning red!

What people who are senior executives want most is the company's equity.

With equity, you become a shareholder of the company!

Even though I own relatively few equity shares, I still feel like I am a master.

However, Aixu Group is not listed.

In other words, the current Aixu Group does not have substantial stocks.

Even if Wang Lin gives everyone a certain amount of equity incentives, he will not distribute them substantial stocks.

"Mr. Wang," Zhou Boqiang asked, "Are you planning to let the company go public?"

Wang Lin shook his head gently: "No, I don't have this plan yet."

Zhou Boqiang said in surprise: "Since that's the case, why do you say you want to give us equity incentives?"

In Zhou Boqiang's perception, equity is the number of stocks held after listing.

Where do companies that are not listed come from?

Wang Lin smiled and said, "Boss Zhou, every company has equity. The equity I mentioned here is not stock."

Zhou Boqiang said, "I'm confused!"

Wang Lin said: "It seems that many people don't understand the new term equity incentive. Next, I will briefly explain the meaning of equity incentives, as well as related models and methods."

He said this, which was equivalent to giving Zhou Boqiang a step forward and giving Zhou Boqiang enough face.

Zhou Boqiang does not understand equity incentives.

In fact, not only Zhou Boqiang doesn’t understand, but Deng Dabao, Shen Xue and others have only a slight understanding of this.

Equity incentives, also known as option incentives, are a long-term incentive mechanism implemented by enterprises to motivate and retain core talents. They are one of the most commonly used methods to motivate employees.

Generally speaking, equity incentives mainly give employees some shareholders' rights through additional conditions, making them have a sense of ownership, thus forming a community of interests with the company, promoting the joint growth of the company and employees, and thus helping the company achieve the long-term goal of stable development.

The enterprise takes out part of its equity to motivate senior management or outstanding employees of the enterprise. Generally, it is a conditional incentive. If the employee needs to work in the enterprise for many years or complete specific goals, it will be motivated before it can be motivated. When the motivated personnel meet the incentive conditions, they can become shareholders of the company and enjoy shareholder rights.

In the early stages of the development of startups, funds were relatively tight, and the biggest problem with insufficient funds was the loss of personnel, especially the team's senior management and core employees. Their loss will have an immeasurable impact on startups.

In order to improve team cohesion and retain management and core employees with limited salary, entrepreneurs racked their brains and slowly developed a system that uses the company's equity as the target to provide long-term incentives to other members, including senior management and core employees of the company, namely equity incentives.

Wang Lin’s Aixu Group is not short of funds.

Therefore, Wang Lin has not used the strategy of equity incentives for a long time.

But in order to better retain talents, he now thought of this move and used this killer weapon.

Of course, the equity incentive models are diverse, including performance stocks, stock options, virtual stocks, stock appreciation rights, restricted stocks, delayed payments, employee stock ownership and other models.

For non-listed companies, virtual stocks are an excellent way.

Virtual stock refers to a virtual stock granted by the company to the incentive object. The incentive object can enjoy a certain amount of dividend rights and appreciation returns of the stock price, but it has no ownership rights, no voting rights, cannot be transferred or sold, and it will automatically expire when leaving the company.

Wang Lin launched this kind of virtual stock.

The virtual stock model is also a common equity incentive method used by enterprises. The company grants the incentive object a virtual stock, and the incentive object can enjoy a certain amount of dividend rights and appreciation returns of the stock price.

If the company's performance goals are achieved, the awardee can enjoy a certain amount of dividends based on this.

Under the conditions under the conditions of virtual stock holders achieving their established goals, when the company pays the holders the income, it can pay both cash, equivalent stocks, or a combination of equivalent stocks and cash. Virtual stocks are used by their holders to share the remaining claim rights of the company and link their long-term returns to the company's benefits.

Virtual equity is a virtualization in the form of equity. Virtual equity is different from corporate equity in the general sense. In order to motivate core employees well, a company distributes a certain number of virtual shares to the company's core employees free of charge. The holders can enjoy the distribution of the company's after-tax profits in proportion to the number of virtual equity.

Unlike purchasing actual equity or stocks, virtual equity is given away free of charge by the company or distributed to specific employees in the form of rewards, and no employee capital is required.

As a material incentive, virtual equity incentives are reflected in that employees who enjoy certain equity can obtain corresponding residual claim rights, and they will enjoy the distribution of the company's after-tax profits in the form of dividends in proportion.

As a spiritual incentive, the advantages of virtual equity incentives are reflected in the fact that employees who hold shares enjoy the property rights of a specific company and work as a shareholder, which will reduce the possibility of moral hazard and reverse choice.

At the same time, because the incentive targets for virtual equity are limited to the company's core employees, the holding employees can feel that the company's full recognition of its own value and create a huge sense of honor.

It is essentially a certificate of enjoying corporate dividend rights, and in addition, no other rights are enjoyed. Therefore, the issuance of virtual stocks does not affect the company's total capital and equity structure.

Virtual stocks have an inherent incentive effect. Holders can manage the company through their own efforts, so that the company can continuously make profits and then obtain more dividend returns. The better the company's performance, the more profits it will be. At the same time, the virtual stock incentive model can also avoid the impact of abnormal decline in the company's stock price due to uncertain factors in the stock market.

This model has a certain constraint effect in a specific period, because the prerequisite for obtaining dividend income is to achieve the company's performance goals, and the income is achieved in the future.

The disadvantages of virtual equity also exist.

The incentive targets may pay too much attention to the short-term interests of the company because they consider dividends, reduce or even do not implement the accumulation of corporate capital reserve funds. In addition, the strong willingness of corporate dividends under this model leads to greater pressure on the company to pay cash. Therefore, the virtual stock incentive model is more suitable for non-listed companies and listed companies with relatively abundant cash flow.

For Wang Lin, his company has abundant cash flow.

He just made more than 2 billion in cash from the stock market.

With this money, he can build a better company.

The company has developed to a certain extent and the employees' working conditions have reached a period of exhaustion. The company needs to come up with new incentive methods, which is also the purpose of Wang Lin's launch of virtual equity.

Although he is confident, his vice presidents will most likely not leave him, and the employees below will not leave easily.

But just in case, Wang Lin still had to make a complete solution.

At the meeting that day, Wang Lin officially introduced the incentive model of virtual equity to everyone.

Virtual restricted shares do not have a valid period. As long as there is no equity repurchase, they can be held for a long time and are valid for a long time until they are repurchased. For employees who retire and retain virtual stocks, they can retain virtual stocks until their death.

However, once an employee resigns or leaves, his equity will be taken back and all dividend rights will be suspended.

For the time being, only executives at the three levels of manager, factory director and vice president can enjoy virtual equity incentives.

The company announces the profits of the previous year, the dividends per share and the price per share at the end of March each year, and distributes the dividends of the previous year in mid-April.

This way, it can effectively keep executives in the company.

Because these are virtual shares, employees do not require capital contributions and ownership belongs to the company. Once the company determines that someone loses its qualification, he has the right to reclaim his equity.

This method is equivalent to giving dividends and bonuses to executives in disguise.

The more profit a company makes, the higher the dividends the executives will pay.

And they don't need to spend a penny.

If a company wants to go public in the future, it will not be affected by virtual stocks.

This method is the best motivation method that Wang Lin can accept now.

As for how many virtual shares are allocated to each vice president?

How many shares will each manager and factory manager allocate?

Wang Lin still needs to study this and make the best allocation plan.

Wang Lin is not painting cakes, but gives everyone a real expectation.

With the current performance of Aixu Group, even if it only gets 1% of its equity, the dividends will be quite considerable.

The executives here naturally understood this and all started to think about it.

This meeting was held for a very long time because it was about discussing equity incentives.

Wang Lin talked for more than two hours and drank a few cups of tea before he finished it.

"There are a few things to talk about. Today, time is limited, so I will talk about it here first." Wang Lin looked at his watch and said, "We will hate the next thing. Let's break up the meeting next day! By the way, I just said that anyone who wants to leave, whether they want to go to other companies or start their own business, it's okay, but I ask you to come to me to explain it clearly. Our colleagues can get together and part with each other! I will not stop your future, and I hope you can not hold back."

Wang Lin said, while sweeping his eyes at several people he thought he might resign.

Those people had a calm look and a calm expression, and could not see any abnormality.

Wang Lin packed up his things and turned around and left the venue.

Zhou Boqiang stood up, walked to the podium, knocked on the table, and said in a deep voice: "Don't leave for now, I have something to say!"

The others sat down again and looked at Zhou Boqiang.

Zhou Boqiang's eyes were very big and sagging, like two panda eyes, which added a little bit of majesty to him.

"I understand what Mr. Wang said just now!" Zhou Boqiang sneered, "Someone is digging our foot! Who are you digging? Everyone here knows it! Please ask yourself, is Mr. Wang treating us well? Is it so thin? I will tell you with my conscience, Mr. Wang treating us well!"

Everyone nodded.

Zhou Boqiang said: "Old Wang is a kind and righteous person. He didn't say he could keep people because he didn't want to stop you from flying high! However, he took out his shares to be motivated! This is what Mr. Wang is keeping people! Please open your eyes and see where to find such a good boss?"

Jiang Yao asked: "What the hell is going on? Which company is poaching people? Who are poaching? Let me declare first, I have never received any invitation from anyone! I will not leave Aixu Company!"

Zhou Xia said: "I believe these people are very happy who they are! At that time, we will naturally know whoever resigns and leaves!"

Chen Fan said: "I declare that I don't! I just joined the company and I can't leave the company. Mr. Wang has the kindness of knowing me, so I will definitely stay in the company and repay Mr. Wang."

Zhang Han said: "I don't have it either! I can't leave the company!"

Ma Hongcai said: "I will also declare that I will never leave the company. Mr. Zhou, is there really someone poaching the vice president of our company?"

Zhou Boqiang nodded calmly: "We have received the news, this matter is absolutely true!"

The whole audience was in an uproar!

Zhou Zhou stood up, looked around the audience, and finally fixed it on Deng Dabao: "Now Mr. Wang is not here, let's all express our opinions! Who is going to leave the company?"
Chapter completed!