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What are the characteristics of virtual equity incentive

Virtual main has the following characteristics: virtual equity is different from the general sense of enterprise equity.

In order to better motivate the core employees, the company distributes a certain number of virtual shares to the core employees within the company free of charge. The holders of virtual shares can enjoy the distribution of the after-tax profits of the company in proportion to the number of virtual shares.

The holder of the virtual equity can only enjoy the right of dividend income, that is, according to the number of virtual equity holding, according to the proportion of the company’s after-tax profit distribution rights, but can not enjoy the rights and interests of shareholders (such as voting rights, distribution rights, etc.).

Therefore, the holders of virtual equity will pay more attention to the operating conditions and profits of enterprises.

Virtual equity is given free of charge by the company or distributed to specific employees in the form of rewards, without employee contribution.

As a way of equity incentive, virtual equity incentive can be regarded as both material incentive and spiritual incentive.