Equity Incentive (1): How to Design Equity Incentive Scheme

As a long-term incentive model, equity incentive can make up for the limitations of short-term incentives, reverse the short-term behavior tendency of operators, retain outstanding core employees and business backbones, and enhance the competitiveness of companies, which is widely respected in practice. Taking XX enterprise group as an example, the author discusses the issue of equity incentive. In order to remain invincible in the fierce market competition, XX enterprise group needs to break the barriers of traditional ideas and introduce new mechanisms. Although various and multi-channel explorations and attempts have been made, compared with private enterprises, their vitality is still far from enough. Investigate its reason, did not touch the operator and ownership separation problem. For XX enterprise group, the author's suggestion is to take the establishment of marketing company as the pilot of equity incentive reform as an opportunity to try to reform the existing property right system and explore an effective and efficient management mechanism. For the marketing company, its future determines the market success or failure of the whole group company. How to establish a perfect incentive mechanism to stimulate people's creative potential to the maximum extent, so as to promote the development of enterprises, will be the premise of the success of marketing companies. Therefore, we should learn from the effective incentives in the world and make useful attempts in timely stock, stock options, annual salary system and other incentives. The purpose of establishing equity incentive mechanism of marketing company is to solve the problems caused by the separation of ownership and management rights, so that the interests of company managers can converge with those of the group, and the management can bear the risks and benefits of operation, thus promoting the company's continuous development and growth.

First, common equity incentive tools.

Cash shares refer to the equity acquired by investors in cash at the beginning of the establishment of the company or when the company increases its capital and shares, and have all the rights conferred by the equity. Cash holding is the simplest and most common way to acquire equity. Cash shares, which were mandatory and task-oriented 20 years ago, have developed into a right today. Without certain qualifications or company background, it is difficult to really own the so-called original shares of the company.

Futures stocks, futures stocks refer to people who have acquired equity. They can not get the equity in cash, but in a special department at the agreed price, and the annual dividend of the equity is used as the fund to buy the equity, until the purchase is completed, they get full rights. Futures stocks only have dividend rights and voting rights before the funds are in place, and can only be converted into common stocks after the funds are in place. Futures stock is a kind of equity incentive method with China characteristics, which has the characteristics of both option and performance stock (gift stock). It is a model adopted to absorb the advantages of options on the basis of performance shares, and it is a kind of institutional innovation. Futures stocks are mainly an incentive measure for senior managers to replace cash with stocks. Some entrepreneurs usually throw this football to make consultants more effective.

Option, also called stock option, refers to the right that the company gives employees to buy a certain number of common shares of the company at a pre-agreed price in the future, which is a future right, not an obligation. There are three elements: exercise period, approximate pricing and exercise price. The implementation of employee stock ownership only gives employees the right to become shareholders of the company, but they did not become shareholders of the company before exercising the purchase right. Option is only an option given by the enterprise to the backbone and core personnel, and it is an uncertain expected income to be realized in the market. Enterprises do not have any cash expenditure, which is beneficial to enterprises to reduce incentive costs.

Management shareholding, management shareholding refers to the fact that middle and senior managers of enterprises hold company shares in various ways, that is, management becomes shareholders, mainly to solve the problems caused by the separation of ownership and management rights.

Second, the overall incentive model

According to the specific situation of the marketing company, according to the nature and characteristics of different types of work, different incentive methods are adopted. The following table lists all levels of incentive methods.

Focusing on the senior managers (general manager and deputy general manager) of the company, it aims to completely bind personal interests with the long-term interests of the enterprise, establish a long-term incentive system facing the future, fully mobilize the wisdom and talents of operators, and inject vitality into the development of the enterprise. Its incentive model combines various types currently carried out in China: cash shares+futures shares+annual salary+options (options)+allowances.

Middle management and business personnel are the backbone of the company in the future. The incentives for middle managers are: cash shares+futures shares+annual salary+options (options)+allowances, which are basically the same as those for senior managers, but the amount of equity incentives is much smaller; Considering the timeliness of the middle-level (district manager) in the business, the annual salary system is changed to the monthly salary system for timely assessment and reward. The incentive method is cash stock+futures stock+monthly salary+bonus+option (option)+allowance.

The incentive for core employees and excellent sales staff is a combination of monthly salary, bonus, allowance and option, and the ratio of monthly salary to stock option is high, so as to retain the talents urgently needed by enterprises.

The salary of sales staff and back office staff consists of bonus, monthly salary and allowance. For a salesperson, bonus is the main part of his salary.

In addition, the senior management of XX Enterprise Group may consider granting stock rights in the future, and the directors and supervisors of the marketing company may consider adopting the compensation methods of allowance, future stock rights and options.

Third, the equity incentive plan

Equity incentive targets: the middle and senior managers of marketing companies are all equity incentive targets, including general manager 1, deputy manager 1-3, tentatively 6 ministers (marketing, sales, logistics, finance, administration and personnel) and 65,438+00 regional managers, of which-global brand network-20 * *. As for the senior managers of XX enterprise group and the directors of marketing company, we can also consider using futures or options as incentives, and reserve incentive space for the senior talents that marketing company will enter in the future. It should be noted that in principle, equity incentives are divided into risk * * * and income * * *, only for middle and senior managers, not for ordinary employees.