What does the company mean by giving employees options?

When the company issues options, it means that at some point in the future, employees can buy the company's equity at a certain price and earn the difference. Offering options by companies is a new expected reward mechanism. After determining the number of shares to be issued, the company shall sign an employee stock ownership contract or employee option contracts with employees. Option incentive is a common means for enterprises to attract talents and improve the enthusiasm of employees.

For employees, options are an incentive measure for listed companies, and employees who hold options can buy shares of the company at a fixed price one day in the future.

For example, at present, the share price of the whole listed company is 9 yuan, and the company has issued 65.438 billion shares to employees (each employee is different), which stipulates that employees can buy 65.438 billion shares of the company at the price of 654.38+ 00 yuan after three years. Assuming that employees have performed well in the past three years, the company's performance is booming and the company's share price has soared to 20 yuan, then each option can earn 10 yuan. This is a reward for employees' hard work.