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Our tax expert provides a full picture of the stock incentive plan and key issues regarding regulatory compliance for employee share plans in China.
People drive the business. Not only should organizations have the right people in place, but it is also vital to keep them to remain a competitive position in the market. Employee incentive programs are one of the most direct ways to attract and retain professional talents. Innovative and competitive employee incentives yield a better bottom line and can enhance business growth.
Equity-based incentive plans, designed to motivate employees by offering them the opportunity for future earnings through company stocks, are an eye-catching option. Employees will be motivated when they take part in the stock price appreciation and the success of business, while your company will enjoy tax benefits.
Particularly in the post-pandemic era where work-from-home becomes a common option for some companies to keep their business running, it is more important to adopt different ways to motivate employees to avoid low productivity or low efficiency that may arise from remote working.
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