Generally speaking, it is good, because the incentive objects of restricted stocks are generally the management team, core technicians and backbone personnel of enterprises. Setting certain exercise conditions, under the dual role of incentive and constraint, the incentive object will make greater efforts to promote the exercise conditions, which is very beneficial to the profit increase and long-term development of enterprises and will drive the stock price.

Equity incentive, also known as option incentive, is a long-term incentive mechanism implemented by 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 way for enterprises to take out part of equity to motivate senior managers or outstanding employees. Generally speaking, there are conditional incentives, such as how many years employees need to work in the enterprise, or to achieve specific goals before they are encouraged. 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 brain drain, especially the top managers and core employees of the team, whose brain drain will have an inestimable impact on start-up companies. In order to improve team cohesion and retain management and core employees with limited salary, entrepreneurs have racked their brains and slowly developed a long-term incentive system for other members of the company, including executives and core employees, which is equity incentive.

Regarding the difference between equity and option incentives, let's first look at the difference between equity and option. Equity refers to the right of shareholders to obtain economic benefits from the company and participate in the company's operation and management based on their qualifications; Option refers to the right that the company grants some people to buy a certain number of shares or shares of the company at a predetermined price and conditions in the future.

In practice, both "equity" and "option" are used as incentives, which are decided by the company. The main factors to be considered include the company's ownership structure, cash flow and the demand of incentive objects.

Equity incentive is an incentive way to serve the long-term development of the company diligently and responsibly by obtaining the equity of the company and giving the business operators certain economic rights, so that they can participate in enterprise decision-making, share profits and take risks as shareholders.