Overseas Listed Companies’ Equity Incentives for Chinese Staff

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Essential considerations for foreign-listed companies offering equity incentives to their employees in China. By丨Kent WOO，Lorine LUO Equity incentive plans have witnessed a notable surge in popularity across China, particularly in industries where talents and innovation are highly sought after. Fully-fledged companies and startups in the sectors such as internet, e-commerce, biotech, pharmaceuticals, manufacturing, and financial services often leverage equity incentive plans to maintain a competitive edge in attracting top-notch talents. By offering equity incentives such stock options, restricted stock, and restricted stock units (RSUs), companies can effectively motivate and retain their employees. As the adoption of these plans increases, there is a growing demand for legal guidance to make sure these plans are implemented and managed in accordance with China’s tax laws and regulations.  This article explores essential considerations and requirements for foreign-listed compan ………………………………