What Is Incremental Revenue?

Incremental profit is based on the theory of marginal cost. It is determined by comparing the two credit policies and studying the calculation method of incremental income and incremental cost.

Incremental profit

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Incremental profit is based on the theory of marginal cost. It is determined by comparing the two credit policies and studying the calculation method of incremental income and incremental cost.

Company principal-agent theory shows that equity incentives can play a very important role in coordinating the interests of company owners and operators, avoiding short-term behaviors in the company's operating decisions, and avoiding the loss of excellent management talents. Therefore, equity incentives for managers have been widely used in practice as an important corporate governance mechanism. Recently, when I designed a senior executive compensation plan for a large state-owned non-listed company, I proposed the following incentive plan for stock appreciation rights. This stock appreciation right incentive method is essentially a variation of the stock right incentive method, and it tries to reasonably apply to non-listed companies that account for the vast majority of Chinese enterprises while retaining most of the advantages of stock option incentive . 1. Determination of the total amount of share appreciation rights granted. Share appreciation ...