Counterattack 1988

Chapter 1016 I won't hold back your future, don't hold me back
"Equity incentives?" Everyone's eyes are shining and turning red!

Those who are at the top want most of all the equity in the company.

With equity, you become a shareholder of the company!
Even if you own less equity, you still feel like a master.

However, Aishu Group is not listed.

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

Even if Wang Lin gave everyone a certain share incentive, he would not give them real stocks.

"President Wang," Zhou Boqiang asked, "Are you planning to list the company?"

Wang Lin shook his head lightly: "No, I don't have any plans yet."

Zhou Boqiang was surprised and said, "Since that's the case, why do you want to give us equity incentives?"

In Zhou Boqiang's cognition, equity refers to the number of stocks held after listing.

For companies that are not listed, where does the equity come from?

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

Zhou Boqiang said, "I'm confused!"

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

When he said that, it was tantamount to giving Zhou Boqiang a step down, and also gave Zhou Boqiang enough face.

Zhou Boqiang really doesn't understand equity incentives.

In fact, not only Zhou Boqiang didn't understand, people like Deng Dabao, Shen Xue, etc. also knew only a little about it.

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

Generally speaking, equity incentives are mainly to give employees part of the shareholder's rights and interests through additional conditions, so that they have a sense of ownership, thereby forming a community of interests with the company, promoting the common growth of the company and employees, and helping the company achieve the long-term goal of stable development.

Enterprises take out part of the equity to motivate senior managers or outstanding employees of the enterprise.Under normal circumstances, it is an incentive with attached conditions. For example, employees need to work in the company for many years or complete specific goals before they are motivated. When the motivated personnel meet the incentive conditions, they can become shareholders of the company and enjoy shareholder rights. .

In the early stage of the development of start-up companies, funds are relatively tight, and the biggest problem caused by insufficient funds is the loss of personnel, especially the senior management personnel and core employees of the team. Their loss will have an immeasurable impact on the start-up company.

In order to improve team cohesion and retain management and core employees with limited salaries, entrepreneurs racked their brains and slowly researched the company's equity as the target, and offered it to other members of the company, including senior managers and core employees. The system of long-term incentives, that is, equity incentives.

Wang Lin's Aixiu Group is not short of funds.

So for a long time, Wang Lin did not resort to equity incentives.

But in order to better retain talents, he now thought of this trick and used this trump card.

Of course, there are various models of equity incentives, such as performance stocks, stock options, virtual stocks, stock appreciation rights, restricted stocks, deferred payment, employee stock ownership and so on.

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

Virtual stock refers to a kind of virtual stock granted by the company to the incentive object. The incentive object can enjoy a certain amount of dividend rights and stock price appreciation income based on this, but it has no ownership, no voting rights, cannot be transferred and sold, and will automatically become invalid when leaving the company.

What Wang Lin launched was exactly this kind of virtual stock.

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

If the company's performance goals are achieved, the grantee can enjoy a certain amount of dividends accordingly.

Under the condition that the virtual stock holders achieve the established goals, when the company pays the holders income, it can pay cash, equivalent stocks, or a combination of equivalent stocks and cash.The virtual stock is to share the residual claims of the enterprise through its holders, linking their long-term income with the enterprise's performance.

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

Different from buying actual equity or stock, virtual equity is given by the company free of charge or distributed to specific employees in the form of rewards, and does not require employees to contribute capital.

As one side of material incentives, virtual equity incentives are reflected in the fact that employees with 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 advantage of virtual equity incentives is reflected in the fact that employees who hold shares enjoy specific company property rights and work as a shareholder, thereby reducing the possibility of moral hazard and adverse selection.

At the same time, because the incentive objects of virtual equity are limited to the core employees of the company, the employees who hold shares can feel that the company fully affirms its own value and have a huge sense of honor.

In essence, it is a certificate that enjoys the right to dividends of the enterprise. Apart from this, it does not enjoy other rights. Therefore, the issuance of virtual stocks does not affect the company's total capital and share capital structure.

Virtual stock has an inherent incentive function. Holders manage and manage the company well through their own efforts, making the company continuously profitable, and then obtain more dividend income. The better the company's performance, the more income it has; at the same time, the virtual stock The incentive model can also avoid the impact of the abnormal decline in the company's stock price on the income of virtual stock holders due to uncertain factors in the stock market.

This model, in a certain period, has a certain restrictive effect.Because the premise of obtaining dividend income is to achieve the company's performance goals, and the income will be realized in the future.

The disadvantages of virtual equity also exist.

Incentive objects may pay too much attention to the short-term interests of the enterprise due to consideration of dividends, reduction or even non-implementation of the accumulation of corporate capital reserves.In addition, enterprises under this model have a strong willingness to pay dividends, which leads to relatively high pressure on the company's cash payment.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 20 billion in cash from the stock market.

With this money, he can do a better job of growing the company.

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

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

But just in case, Wang Lin still had to make sure measures.

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

There is no valid period setting for virtual restricted shares. As long as there is no equity repurchase, they can be held for a long time and be valid for a long time until they are repurchased.For employees who retain phantom stock after retirement, they can keep the phantom stock until their death.

However, once an employee resigns or leaves the company, the equity will be withdrawn 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 profit of the previous year, the dividend per share and the price per share at the end of March every year, and distributes the dividend for the previous year in mid-April.

In this way, executives can be effectively kept in the company.

Because these are virtual shares, no employee contribution is required, and the ownership belongs to the company. Once the company determines that someone is disqualified, it has the right to withdraw its equity.

This method is tantamount to distributing dividends and bonuses to executives in disguise.

The more profitable the company, the higher the payouts for executives.

And they don't need a penny of funding.

If the company goes public in the future, it will not be affected by virtual stocks.

This method is the best incentive method Wang Lin can accept now.

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

How many shares are allocated to each manager and factory director?

On this point, Wang Lin still needs to study and make the best distribution plan.

Wang Lin is not drawing cakes, but giving everyone real expectations.

With the current performance of Aishiu Group, even if only 1% of the equity is allocated, the dividends are very considerable.

The executives present here naturally understood this, and each of them started to think carefully.

This meeting was extremely long because of the discussion of equity incentives.

Wang Lin talked for more than two hours and finished after drinking several cups of tea.

"I still have a few things to talk about. Today's time is limited, so let's stop here." Wang Lin looked at his watch and said, "We will hate the next thing another day. The meeting is over! By the way, I just said , anyone who wants to leave their job, whether they want to go to another company or start their own business, but I ask you to come to me and explain clearly. We are colleagues, so we can get together and break up! I don’t Blocking the future, I hope you will not hold back."

As Wang Lin spoke, he glanced at a few people who he thought might resign.

Those people's eyes were calm, their faces were calm, and they couldn't see any abnormalities.

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

Zhou Bo stood up abruptly, walked to the podium, knocked on the table, and said in a deep voice, "Everyone, don't leave, I have something to say!"

The others sat down again and looked at Zhou Boqiang.

Zhou Boqiang's eye bags are very large and drooping severely, like two panda eyes, which gives him a bit of prestige.

"I understand what Mr. Wang said just now!" Zhou Boqiang sneered, "Someone is poaching our wall! Who is it? Everyone here, you know it in your heart! Everyone, please ask yourself, is Mr. Wang treating us well? ? Do you treat us kindly? I can tell from my conscience, Mr. Wang treats us not kindly!"

Everyone nodded.

Zhou Boqiang said: "Wang is always a benevolent person. He didn't open his mouth to keep people, because he didn't want to stop you from flying high! However, he kindly gave out equity as an incentive! This is Mr. Wang keeping people! Please open your eyes!" Open your eyes and see, where can you find such a good boss?"

Jiang Yao asked: "What's going on? Which company is poaching people? Who are they poaching? Let me declare first that I have never received any employment invitation from anyone! I will not leave Aixiu Company either! "

Zhou Xia said: "Who the hell is it? I believe these people are very clear-eyed! When the time comes, we will know who resigns and leaves!"

Chen Fandao: "I declare that I have not! I have just joined the company not long ago, and it is impossible for me to leave the company. Mr. Wang has shown me kindness, and I will definitely stay in the company and repay Mr. Wang well."

Zhang Han said: "Me neither! I can't leave the company!"

Ma Hongcai said: "Let me also declare that I will never leave the company. Boss Zhou, is it true that someone poached our company's vice president?"

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

There was an uproar!

Zhou Congee got up, looked around the audience, and finally fixed on Deng Dabao: "Now that Mr. Wang is not here, let's all make a statement! Who wants to leave the company?"

But Zhou Boqiang waved his hand and said: "You don't need to express your opinion. Who is this person? Or, who are these people? It's not difficult for us to find out. If they are determined to leave, they will show their fox tails in a short time. Now , I would like to give you a chance to personally go to Mr. Wang and explain the situation to Mr. Wang. I don’t care if you want to leave or not! As long as someone from another company poachs you, you should explain it to Wang Lin!"

(End of this chapter)