Equity incentives help ease the compensation pressure on the company. Since most non-listed companies belong to small and medium-sized enterprises, they generally face a shortage of funds. "Thus, through equity incentives, the company can properly reduce operating costs and cash outflows." At the same time, it can also improve the company's business performance, retain high performance, strong ability of the core talent. For the original shareholders, the implementation of equity incentive is conducive to reduce the "moral hazard" of professional managers, so as to achieve the separation of ownership and management rights. For the employees of the company, the implementation of equity incentives is conducive to stimulate the enthusiasm of employees, to achieve their own value. Practice has proved that after the implementation of the equity incentive plan, because the long-term value of employees can be reflected through equity incentives, the employee's work enthusiasm will be greatly increased, and because of the binding effect of equity incentive, employees' loyalty to the company will be enhanced.
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