Tip: no matter what way, we need to make an agreement in advance to avoid disputes.
In the above analysis, we have analyzed some details of the incentive. Before the official launch, we suggest that the boss should make detailed planning according to the following points:
1. What are the company's strategic objectives in the next 3-5 years?
Equity incentive is to serve the strategic development of the company. The clearer the strategic objectives, the more conducive to the implementation and implementation of the plan. After confirming the target, the company will decompose the target into clear items and target budget. In addition, we should consider whether there is a future listing plan and when to start the plan, which plays a decisive role in the design of equity incentive.
2. Is the ownership structure clear?Is the financial and personnel management system sound?
Many bosses have several different affiliated companies and carry out the same or different businesses at the same time. When equity incentive is started, it will be found that the ownership structure does not match the business structure, resulting in the personnel unable to correspond with the business and operating results. Therefore, the rationality of equity structure is the basis for the company to start equity incentive, especially the real equity incentive.
In addition, Effective financial accounting and budget system, as well as the salary, performance and evaluation system of human resources, It has a very important support for the design and implementation of equity incentive scheme.
3. What is the purpose of equity incentive?
Equity incentive is not a "method" that can solve all the problems of the company. Some institutions deify equity incentive and think that it can solve the problem by doing incentive.Equity incentive can be an "accelerator" for enterprise development, but it is not a "big pill" to solve all problems.The development of the company is closely related to the industry and market environment. In order to achieve the desired effect of equity incentive, enterprises should make clear the purpose of equity incentive and manage the expectation reasonably.
The case in this paper is analyzed from the perspective of incentive for a certain employee. In fact, this is far from the whole picture of equity incentive. There are many factors that need to be considered to implement an equity incentive that meets the needs of enterprise development. After fully understanding the situation of the enterprise, we also need to select the appropriate incentive tools (real shares, virtual equity, etc.), determine the key incentive elements (fixed person, fixed amount, timing, etc.), set performance evaluation conditions and equity management measures.