How To Eliminate Dirty Equity Incentives

Since the launch of equity incentive management measures (Trial Implementation) of Listed Companies in early 2006, the equity incentive system has been in the A share market for more than ten years.

After more than ten years of development, equity incentive has become a normal form of A share listed companies. A large number of listed companies have launched and implemented equity incentive programs every year.

In the first quarter of this year, a total of 79 listed companies in the A share market announced the implementation plan or preplan of the equity incentive plan.

Among them, 40 listed companies have been implemented, and 15 have passed the shareholders' meeting. In addition, 24 listed companies have passed the plan of the board of directors.

Recently, we have seen several equity incentive plans or plans announced by several listed companies. After seeing, there is a feeling of stab in the throat, which makes people feel bad.

For example, the A company, which announced the draft equity incentive in early April, was awarded a price of only 1.53 yuan, or even less than its net assets of 1.88 yuan in the first three quarters of 2015.

Compared with A, B's equity incentive plan is even better.

For example, the price granted by B equity incentive is "zero yuan", and the equity incentive object does not need to pay any cost of capital.

Moreover, in performance appraisal, only 8% of annual growth is regarded as a "preferential" condition.

More importantly, the 2015 performance as one of the comparable foundations unexpectedly dropped by 86.16%, thereby significantly lowering the equity incentive standard.

What is even more surprising is that the actual controller of the company and another director of the company have received 2 million 900 thousand restricted shares, accounting for 40.45% of the total number of restricted shares to be granted. The two executives have become the biggest beneficiaries of B stock option incentives.

The purpose of equity incentive is to fully mobilize the enthusiasm of senior managers and employees of listed companies, and to strengthen the common interests of senior managers and shareholders of listed companies, so as to improve the performance of listed companies.

However, from the equity incentive plan launched by some listed companies, it clearly deviates from the original intention of equity incentive.

From the above two companies

The plan is obviously suspected of damaging the interests of the public investors.

In particular, the B company's equity incentive plan not only has the suspicion of interest pmission, but also does not exclude the fact that the company's actual controllers and executives are "fatting themselves".

Like B's equity incentive plan, it is difficult to mobilize the enthusiasm of executives and employees, and it is more difficult to guarantee the performance of listed companies.

Such a stock option incentive scheme has completely deviated from the original intention of the equity incentive mechanism launched by the management.

It does not even rule out the possibility of equity incentive to become a new cancer in the A share market.

Because of this, as a regulatory department, it is necessary to standardize the equity incentive system, and resolutely say "no" to the current "share pfer" equity incentive in the A share market.

First of all, the performance appraisal of equity incentive must be strictly regulated.

First, the assessment of the performance base does not allow B companies to fall sharply.

In the event of such an accident, the above year's performance is benchmarked, plus the appropriate growth rate (10%).

On this basis, we will calculate the corresponding growth rate of equity incentive in the corresponding year.

Or directly stipulates that the implementation of equity incentive companies, the first three years of profit indicators must maintain growth.

Two, the growth rate of equity incentive should not be too low in the corresponding year. The growth rate must be maintained at the upper and middle levels of the same industry, and the minimum range of performance growth should be no less than 10%.

This ensures that the performance of equity incentive companies can grow at a high speed, reflecting equity incentive.

The boost of performance.

Secondly, we must strictly regulate the awarding price of equity incentive stock and strictly prohibit "

Appearance.

The equity incentive of listed companies, including restricted stock or option incentive, is determined according to the market price at the time when each plan is due.

The average stock price of the twenty days before the expiration date of the equity incentive plan is calculated. The conversion rate of equity incentive stock price depends on the growth rate of the company's performance.

In the same period, 20% of the year's performance increased, 20% of the stock price was granted, and 30% of the growth rate was awarded 30% of the stock price, but the maximum discount rate was not more than 50%. The price of equity incentive should not be lower than the net asset value per share of the company's stock.

According to this regulation, the "zero incentive" will not appear, and the "half price discount" equity incentive will also be difficult to appear on a large scale.

The "equity pfer" equity incentive will end.