Cambricon(SH:688256) Mei Ri Jing Ji Xin Wen·2025-11-04 01:17Core Viewpoint - The recent lawsuit involving Cambrian (SH688256) for a compensation claim of approximately 4.287 billion yuan has highlighted the growing issues surrounding equity incentives in the tech sector, emphasizing the need for careful management of these incentives to avoid disputes [1][2]. Summary by Sections Equity Incentive Disputes - The lawsuit has drawn attention to the significant discrepancies in equity valuation before and after a company goes public, which can lead to disputes over substantial financial interests [1]. - The complexity of equity incentive agreements and insufficient rigor in related contracts are direct triggers for disputes, as these agreements span multiple legal domains [2]. Importance of Equity Incentives - Despite the risks, equity incentives remain essential for tech companies to attract and retain top talent, aligning individual interests with corporate growth [2]. Recommendations for Companies - Companies should meticulously design contract terms, clearly defining potential risk points and scenarios to minimize future disputes [3]. - It is crucial to address various situations, such as employee departures and performance issues, within the contracts to prevent ambiguity [3]. Recommendations for Employees - Employees should thoroughly review contract terms before signing, paying close attention to restrictive clauses that may affect their rights [3]. - Seeking independent legal advice is recommended to assess potential risks associated with equity agreements [3]. Professional Involvement - Companies should engage professional legal and tax advisors when designing incentive plans to ensure clarity and compliance with legal requirements [4]. - Both companies and employees should leverage professional expertise to create robust legal frameworks that support effective equity incentive programs [4].