2. Bind the interests of the boss and employees, integrate upstream and downstream, * * * take risks, * * * enjoy benefits and * * * develop together.

3. Solve the potential problems caused by the principal-agent relationship between shareholders and executives.

4. Let the company's development goals become employees' personal development goals and promote the full-speed development of the enterprise.

5. For some start-ups, the early cash flow pressure is greater, and employees are expected to gain future income through equity incentives, thus reducing cash flow expenses.

Extended data

trait

1, long-term incentive

From the perspective of employee salary structure, 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.

2. Talent value reward mechanism

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.

3. Corporate control incentives

Through equity incentive, employees can participate in management decisions related to enterprise development. After having partial control over the company, they will not only pay attention to the company's short-term performance, but also pay more attention to the company's long-term development and be truly responsible for the company.

Baidu Encyclopedia-Equity Incentive

Baidu Encyclopedia-Equity Incentive Plan