Equity incentive is one of the many ways to motivate employees for a long time, which belongs to the category of option incentive. Equity incentive is an incentive way to serve the long-term development of the company diligently and responsibly by obtaining the equity of the company and giving the business operators certain economic rights, so that they can participate in enterprise decision-making, share profits and take risks as shareholders.
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In the early stage of the development of start-up companies, funds are relatively tight, and the biggest problem caused by insufficient funds is brain drain, especially the top managers and core employees of the team, whose brain drain will have an inestimable impact on start-up companies. In order to improve team cohesion and retain management and core employees with limited salary, entrepreneurs have racked their brains and slowly developed a long-term incentive system for other members of the company, including executives and core employees, which is equity incentive.