Document background
The Equity Incentive Agreement is a crucial document used by Hong Kong companies to implement share-based compensation programs. It is typically used when a company wishes to align employee interests with corporate objectives by offering ownership interests through shares, options, or other equity instruments. The agreement forms part of the company's broader compensation strategy and must comply with Hong Kong's Companies Ordinance, Securities and Futures Ordinance, and relevant tax regulations. It is particularly important for start-ups, listed companies, and businesses looking to attract and retain key talent. The document includes specific provisions on grant terms, vesting schedules, exercise procedures, and restrictions on transfer, while also addressing tax implications and compliance requirements under Hong Kong law.
