Restricted Shares

- Participants awarded with company shares after fulfilled certain pre-determined conditions

- Generally participants do not need to pay consideration, which guarantees certain value to employees

- The market price is the gross profit that the participant can get

- HK listing companies generally need to set up a trust to manage RS/RSU plan

Shares Option

- Participants have the right to buy company’s share at a pre-determined strike/exercise price and conditions

- The difference between the exercise price and the market price is the profit that the participant can get

- Affected by stock price. When the stock price is lower than exercise price, it has no value to the participants

Stock Appreciation Rights

- Offer the right to the cash equivalent of a stock's price gains over a predetermined time interval

- Generally it settled in cash and the participants do not need to pay the any cost

- There is not dilution to the shares as no new shares need to be issued

Phantom Stocks

- Benefits of owning company stock without the actual ownership or transfer of any shares

- Generally it settled in cash and the participants do not need to pay the any cost

- There is not dilution to the shares as no new shares need to be issued