“Increase long-term incentive effects and reduce management costs and risks” are two key points of equity incentives. We recommend that CEOs have their own principles as the basis for communicating and implementing equity incentives. This will help employees to more clearly understand the intent of the program design, and more effectively turn the incentives on paper into substantive power.Recommended for the following readers: The CEO who has a preliminary understanding of ESOP, the executives and core employees involved in equity incentives, and investors who are eager to improve their post-investment management capabilities.