subject: Zhang Made The Absence Of Haier Rich Scheme - Zhang, Haier - Hc Network Appliance Industry [print this page] Equity Incentive avoid becoming "welfare" problem, and solve the individual incentive targets "free rider" phenomenon
Zengyin related party transactions may Lang bombarded by Qingdao Haier, on December 25, 2006 announced a stock incentive plan, this equity incentive plan, was the controlling shareholder of a performance made the process of share reform commitment, two by the company's equity incentive effectively enhance the performance targets with incentives tied to one individual value of the equity in the company's development of incentive to play its support and incentive effects.
Degree of concern from the market and secondary market stock price run, Qingdao Haier equity incentive program was recognized by investors. SW and other brokerages to adjust its rating to "overweight", Ping An Securities, Guoxin Securities will adjust its rating "recommended", Haier announced after the program date from the disclosure of 10 consecutive trading days up 45.87 percent, The Shanghai Composite Index rose only 20.56 percent. .
Haier equity incentive object consists of four parts were, first, including the chairman of the board directors, including Yang Mian Mian (excluding independent directors); Second, senior management personnel; third nominated chairman of the backbone and outstanding contribution to business employees (not including plan has set out the name of a director, senior management and other incentive target); 4 is reserved for incentive object. The first 60 million stock options were granted to the first three main parts, directors and senior managers receive 11.9 million copies, Yang Mian Mian will be 3 million copies (equivalent to 0.25% of total share capital of the company), chairman of the board nominated by the backbone and prominent business 48.1 million were contributed by employees.
Incentive programs, incentive target funds own arrangement for the exercise, Haier Group and listed companies do not offer a penny. It is worth noting that Haier Group CEO Zhang is not in the scope of this equity incentive.
As of February 28, 2007, Qingdao Haier, the stock closed at 10.39 yuan, here estimated 7-year period to 80 million copies of incentive options will be able to bring an object about 2.2 billion revenue. Chairman and Managing Director of which was granted 3 million copies, respectively, 200 million, respectively, the expected return of 828 million, 5.52 million yuan. Of course, valid for 7 years, then what will be how high stock prices, but also unpredictable.
Design ideas Increasingly competitive home appliance industry and the industry concentration increased gradually, especially in human resources at the global scale in the competition, product upgrades and Qingdao Haier faced a crucial period of international markets, how to effectively motivate and retain key employees to be decided Haier's development strategy to achieve an extremely important factor, so equity incentive Qingdao Haier was put on the agenda. 14 November 2006 Midea (28.99, -1.41, -4.64%), introduction of incentive stock options, to some extent accelerated the Qingdao Haier launched equity incentive plan.
Qingdao Haier equity incentive primarily on the basis inspire object importance of listed companies and the contribution, through the annual operating contract signed, to performance assessment-oriented corporate performance, individual performance and reflect the core values of staff closely linked together, then surely the value of human capital of employees in order to avoid equity incentive become a "welfare" issues, and address individual incentive targets "free rider" phenomenon. According to Shanghai Rong is introduced in the scheme of phase, the company vice chairman Cui clear requirements and Qingdao Haier equity incentive plan design must meet two major principles: First, consistent with regulatory authorities to promote the mainstreaming program, and second of all shareholders and market acceptance of the program. Therefore, the Shanghai Rong is design to take into account as the leading home appliance industry, Qingdao Haier, whether in the product market, or in the capital markets have a very influential, and therefore equity incentive plan formulation process, we consider the Qingdao Haier market position, brand influence degree, development strategy, human resources planning and other factors, but also done to protect the interests of investors, Qingdao Haier, to ensure that investors can share in the sound operation of the secondary market, the company brought a premium valuation.
