Restricted stock refers to a certain number of shares of the company granted by a listed company to the incentive object according to predetermined conditions. Incentive objects can only sell restricted stocks and benefit from them if their working years or performance targets meet the conditions stipulated in the equity incentive plan.

Judging from the design practice of foreign restricted stock schemes, the restrictions are mainly reflected in two aspects: first, the acquisition conditions; The second is the conditions of sale, but in general, the focus is very clear, especially the second aspect. And the scheme is designed according to the actual situation of each company, which has certain flexibility.

Restricted shares should pay attention to the following links:

1. Date of award. The grant date of restricted stock refers to the date when the company actually grants restricted stock to its employees according to the restricted stock equity incentive plan adopted by the shareholders' meeting when the grant conditions required by the plan are met.

2. Lock-up period (lock-up period). Lock-up period refers to the period during which employees of the company are not allowed to transfer restricted shares through the secondary market or other means. According to China's "Measures for the Administration of Equity Incentives of Listed Companies (Trial)", the restricted shares shall not be sold after 1 year from the date of grant.

3. Unlocking period. After the lock-up period is over, enter the unlock period. During the unlocking period, if the company's performance meets the conditions stipulated in the plan, the restricted shares obtained by employees can be unlocked in stages as planned. After unlocking, employee shares can be freely sold in the secondary market.

For restricted shares, on the grant date, the employees of the company obtained the shares granted by the company, but these shares are restricted, and employees cannot transfer them in any form and get benefits. Therefore, on the grant date, the restricted shares obtained by employees are different from the publicly tradable stock options mentioned in document No.902 of Guoshuihan [2006], and are not property with definite value. Only during the unlocking period, employees meet the unlocking conditions of the equity incentive plan, and the company actually unlocks the qualified restricted shares of employees, can employees actually obtain property with certain value.