Performance shares are shares donated by joint-stock companies for free. Generally used as a reward for company sponsors; Sometimes it is also used to give away employees or win over some influential people. The gift of performance shares should be approved by the board of directors, because it involves shareholders' rights and interests, resulting in the reduction of shareholders' rights and interests.

in a narrow sense, performance stocks are equity incentives. Broadly speaking, as long as the legal registrant and the actual obligee of a certain equity are not exactly the same person, this part of the equity is called performance stock.

The real share is the equity through industrial and commercial registration in the legal sense, which requires actual investment and is protected by law. Enterprises can contract the real shares into price, which can be transferred.

the real share is the actual share incentive, which is achieved by the original shareholders of the enterprise deciding to transfer part of their shares to employees (newly joined shareholders) or absorbing new shareholders through capital increase and share expansion. Usually, the implementation of real stock equity incentive will sell the equity to employees at a discount, or through the way of private placement of shares, so that employees can obtain higher value equity.

Extended information:

Article 35 of the Company Law of the People's Republic of China stipulates: "Shareholders shall receive dividends in proportion to their paid-in capital contribution; When the company increases its capital, the shareholders have the priority to subscribe for the capital contribution in proportion to the paid-in capital contribution. However, unless all shareholders agree not to share dividends according to the proportion of capital contribution or not to subscribe for capital contribution in priority according to the proportion of capital contribution. "

Paragraph 2 of Article 3 of the Company Law of the People's Republic of China stipulates that "the shareholders of a limited liability company shall be liable to the company to the extent of their subscribed capital contribution; Shareholders of a joint stock limited company are liable to the company to the extent of their subscribed shares. "

Reference: Baidu Encyclopedia-Baidu Encyclopedia of Performance Shares-Equity Incentive