Equity incentive is a long-term incentive mechanism for enterprises to motivate and retain core talents, and it is one of the most commonly used methods to motivate employees. Equity incentive is mainly to give employees some shareholders' rights and interests by attaching conditions, so that they can have a sense of ownership, thus forming a whole body of interests with enterprises, promoting the growth of enterprises and employees, and then helping enterprises achieve the long-term goal of stable development.
Equity incentive is a long-term incentive. The higher the employee's position, the greater the impact on the company's performance. In order to make the company develop continuously, shareholders generally adopt the form of long-term incentives to closely link the interests of these employees with the interests of the company, build the same interest body, reduce agency costs, and give full play to the enthusiasm and creativity of these employees, thus achieving the company's goals.
The return of talents' value can not be satisfied by wages and bonuses. The effective way is to directly implement equity incentives for these talents, closely link their value return with the company's continuous value-added, and repay their contribution to enterprise development through the company's value-added.