Category

Cash Awards

Category

Although the requirements to obtain approval for an equity plan from the State Administration of Foreign Exchange (SAFE) in China have relaxed over the past few years and, consequently, the approval process has become more predictable and faster, it still requires significant resources (both financially and from a staffing perspective to administer the ongoing requirements).

Therefore, many companies (especially those with a lower headcount in China) are still looking for strategies to avoid the SAFE requirements.  And while there is never a perfect solution, most of these companies choose to grant cash awards.  Cash awards can mean different things, so let’s look at the different alternatives.