How can state-controlled listed companies make better use of equity incentive plans? Sui Li,  Board Secretary, Guangzhou Automobile Group, shares her experience.

Equity incentive plans allow employees to obtain company equity and enjoy economic rights to a certain extent, but they also allow them to participate in the business in the role of company shareholders or partners, who share profits and risks, and contribute to the long-term development of the company.

As an important incentive mechanism for employees, equity incentives are one of the main ways for enterprises to attract, retain and develop talent. They are an effective way for enterprises to obtain high-quality human resources in competitive markets.

As of the end of 2020, a total of 1,819 A share companies have implemented equity incentive plans. Among them, 26.55% chose the stock option method, 64.10% chose the restricted stock method, and 9.35% chose a combination of the two.

In corporate management, we often talk about letting core employees hold stocks, turning the company into a career platform for employees and changing the way in which corporate value is distributed. In the actual process, the company’s implementation of equity incentives must continue to produce effects where employees see actual benefits. So how to make an effective equity incentive plan is a fundamental issue that the company needs to consider when formulating a plan.

Guangzhou Automobile Group was the first large-scale state-owned automobile group in the Mainland to complete dual listing in Hong Kong and the Mainland. We have been exploring ways to improve the company’s medium and long-term incentive mechanisms and, in this article, I will share some practical steps on implementing equity incentives in state-controlled listed companies.

The four stages of equity incentive plans

According to our experience, the steps to achieving an effective equity incentive plan can be divided into four stages: plan decision, design, implementation and optimisation. The main points of each stage are set out below.

1. Plan decision

Decide on the necessity and feasibility of the equity incentive plan, taking into account the company’s current situation, future business planning, performance development level, stock price trend, human resource status, market attention, etc. These factors will directly or indirectly affect the timing of the implementation of equity incentives, award pricing, the scale of the plan, exercise conditions and the probability for exercising the option. Generally speaking, if the company is in a competitive industry, the industry and the company’s business are on the rise, market scrutiny is high, the demand for highly qualified talent is rising and the company’s valuation is low, it is appropriate to implement an equity incentive plan. 

2. Plan design

Consider the seven aspects of plan design, namely method, personnel, source, quantity, price, goal and mechanism. This is the most important part of the design and implementation of the entire plan.

Method. At present, most companies use stock options and restricted stocks; some companies also use a combination of options and restricted stocks at the same time.

Personnel. The equity incentives of listed companies must be directed at employees of the listed company and its holding subsidiaries, which generally include company executives, core technology and business personnel, employees who have a direct impact on the company’s performance and qualified foreign employees. Independent directors and supervisors cannot be the target of incentives. The person in charge of a local state-owned enterprise appointed and managed by a higher-level organisation cannot participate. In the case of a joint venture that is an important source of profit for the listed company, the company may apply to the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) to include this type of joint venture in the plan, according to whether there is a policy particularity in the industry.

Source. The source of equity incentives includes issuing shares to incentive targets, repurchasing the company’s shares, and other methods permitted by law and administrative regulations. Generally speaking, when the stock price is lower than the net assets per share, it is recommended to adopt the repurchase method. The source of funds for equity incentives must be legal and free funds, and listed companies should not provide any form of financial assistance.

Quantity. The total number of underlying stocks involved should not exceed 10% of the total equity and for STAR market companies the number should not exceed 20%. The company’s stocks granted through all equity incentive plans within the validity period must not exceed 1% of the total share capital of the company.

Price. The exercise price of stock options should not be lower than the par value of the stock and should not be lower than the higher of the following prices: the average trading price of the company’s stocks on the trading day before the draft equity incentive plan is announced, or one of the average trading prices of the company’s stocks 20, 60 or 120 trading days before the draft equity incentive plan is announced. The restricted stock grant price should not be lower than the par value of the shares and should not be lower than the higher of the following prices: 50% of the average trading price of the company’s stocks on the trading day before the draft equity incentive plan is announced, or 50% of one of the average trading prices of the company’s stocks 20, 60 or 120 trading days before the draft equity incentive plan is announced. If the fair market price of the state-owned listed company’s stock is lower than the net assets per share, the restricted stock price should not be less than 60% of the fair market price.

Goal. The incentive plan should adopt a two-tier evaluation system: the company-level performance evaluation and the individual-level performance evaluation. Among them, performance indicators can be roughly divided into comprehensive indicators, growth indicators and enterprise operation quality indicators, which are determined by the enterprise according to its own situation.

Mechanism. Mainly includes exercise unlocking arrangements and personnel exit management mechanism. Current regulatory policy has clarified that the waiting period/restriction period for the implementation of equity incentives for state-controlled listed companies is two years in principle, and the options will be exercised/unlocked in batches of at least three years at an even pace, that is, the 2+3 model. But the company can apply to SASAC to make slight adjustments according to the actual situation, such as adopting the 3+4 model, or the 3+3 model.

3. Plan implementation

According to the current policy, whether for central enterprises or local state-owned enterprises, the approval process of all companies’ equity incentive plans is roughly the same, based on the principle of ‘the one who invests to approve’. It includes ‘making plans, pre-communication with SASAC, internal decision (locking price), formal report to SASAC, approval and reply from SASAC, general meeting of shareholders (final approval), board of directors (grant), registration and deposit exercise/review of exercise/unlocking conditions, exercise/unlock’.

Among these, A+H share listed companies need to pay special attention to three points set out below.

Before announcing the equity incentive plan, it should be submitted to the relevant stock exchange for preview. If the equity incentive plan adopts restricted stocks, and involves related transactions between directors, executives and the company, the company needs to hire an independent financial adviser for H shares to provide formal views which shall be issued together with the general meeting circular.

In principle, the implementation of equity incentives in A share companies should be subject to the regulatory rules of both Hong Kong and the Mainland at the same time. However, due to differences in the listing rules relevant to A share and H share companies, individual provisions of the equity incentive plan might not meet the rules of the two places at the same time. The company shall communicate in advance with the regulators in both Hong Kong and the Mainland.

Do a good job in shareholder communication and explanation before the general meeting of shareholders. Because H class shareholder’s interests can differ greatly from those of A class shareholders, the equity incentive plan must be approved by the company’s shareholders’ meeting as well as the A/H class shareholders’ meeting. It is suggested that listed companies should do a good job in shareholder identification and investor communication in advance, obtain the understanding and support of shareholders and investors, and hire relevant professional institutions to assist if necessary. 

4. Plan optimisation

Do a good job in market and peer tracking, equity incentive exercise data analysis, effect evaluation, etc. Summarise problems and experience in preparation for the new equity incentive plan.

Sui Li, Board Secretary  
Guangzhou Automobile Group  

国有控股上市公司股权激励方案

国有控股上市公司如何更好地运用股权激励工具？广汽集团董事会秘书眭立女士分享了经验。

股权激励是以公司股票为标的，使员工通过获得公司股权并享有一定的经济权利，一定程度上以公司股东或合伙人角色参与企业经营，分享利润，共担风险，勤勉尽责的为公司长期发展服务的激励方式。 

股权激励作为现代企业激励机制重要内容，是企业吸引人才、留住人才和发展人才的主要方式之一，是企业在市场竞争中持续稳定获得高质量人力资源的有效途径。 

截止2020年底，A股上市公司已实施股权激励的累计达1819家，占44.33%；其中，26.55%的上市公司选择股票期权方式，64.10%的上市公司选择限制性股票方式，9.35%上市公司选择复合工具方式。 

在企业管理中，我们经常讲让核心员工持股，把公司变成员工的事业平台，转变企业价值的分配方式。

实际过程中，公司实施股权激励要持续产生激励效果，归根结底还是要让员工看到实际的收益。那么，如何制定一个有效的股权激励计划，则是公司在制订计划时需要考虑的根本性问题。 

广汽集团是国内首家A+H上市的大型国有汽车集团，上市至今，一直以来在公司中长期激励机制建设方面都在不断探索。现在结合我们的实践，我将谈一谈国有控股上市公司实施股权激励的实务要点。

股权激励计划的四个阶段

根据我们的实践经验，股权激励方案设计步骤可分为四个阶段：前置判断、方案设计、方案实施、管理优化，各阶段主要工作要点如下：

1. 前置判断

判断股权激励计划实施的必要性和可行性。对公司当前所处行业周期、未来业务规划、业绩发展水平、股价走势、人力资源状况、市场关注度等方面进行综合判断，这些因素会直接或间接影响股权激励的实施时点、授予定价、授予规模、行权条件、可行权概率等。一般而言，如公司处于充分竞争行业，行业发展和公司业务处在上升期，市场关注度较高、高端核心人才需求缺口大、公司出现低估值等情形时，是实施股权激励计划的合适时间窗口。

2. 方案设计

解决7个方面的问题，包括方式、人员、来源、数量、价格、目标、机制，这是整个方案设计实施的最为重要环节。

1. 方式：目前应用的主要有股票期权、限制性股票，也有公司同时采用期权和限制性股票的复合型工具。
2. 人员：上市公司股权激励对象必须为上市公司及其控股子公司的员工，一般包括公司高管人员、核心技术和核心业务人员、对公司业绩有直接影响的员工以及符合条件的外籍员工，但是独立董事、监事不能成为激励对象。地方国企中由上级组织任命管理的企业负责人不能参与。如果是上市公司重要利润来源的合营企业，各公司可根据所处行业是否存在政策特殊性向国资委申请将该类合营企业纳入。
3. 来源：股权激励的股份来源有向激励对象发行股份、回购本公司股份以及法律、行政法规允许的其他方式如股东转让。一般来说，当股价低于每股净资产时，建议采用公司回购方式。股权激励的资金来源一定是激励对象的合法自由资金，且上市公司不得提供任何形式财务资助。
4. 数量：上市公司全部有效期内的股权激励计划，所涉及的标的股票总数累计不超过股本总额的10%，科创板上市公司累计不超过20%，任何一名激励对象通过全部在有效期内的股权激励计划获授的本公司股票，累计不得超过公司股本总额的1%。
5. 价格：股票期权行权价格不得低于股票票面金额，且不得低于下列价格较高者：股权激励计划草案公布前一个交易日的公司股票交易均价；股权激励计划草案公布前20个交易日、60个交易日或者120个交易日的公司股票交易均价之一。限制性股票授予价格不得低于股票票面金额，且不得低于下列价格较高者：股权激励计划草案公布前一个交易日的公司股票交易均价的50%；股权激励计划草案公布前20个交易日、60个交易日或者120 个交易日的公司股票交易均价之一的50%。国有控股上市公司股票公平市场价格低于每股净资产，则限制性股票授予价格应不低于公平市场价格的60%。
6. 目标：激励计划可采用二层考核体系，分别为公司层面业绩考核及激励对像个人层面绩效考核。其中业绩指标大致可以分为综合性指标、成长性指标和企业运营质量指标，具体由企业根据自身情况确定。
7. 机制：主要包括行权解锁安排和人员退出管理机制。当前政策已经明确国有控股上市公司实施股权激励的等待期/限售期原则上为2年，至少分3年分批匀速行权/解锁，即2+3模式，但公司可以向国资委申请根据实际情况稍作调整，比如采用3+4模式或3+3模式等。

3. 方案实施

根据当前政策无论是中央企业还是地方国企，按照“谁出资谁审批”的原则，各公司股权激励计划审批流程大致相同，包括制订计划、国资委预沟通、内部决策（锁价）、正式上报国资委、国资委审批及批复、股东大会最终审批、董事会授予、登记存管、行权/解锁条件审议、行权/解锁几个环节。其中，如果是A+H上市公司，需要特别留意三点。

1. 发出股东大会通函之前将股权激励计划报有关交易所预审，如果股权激励计划采用限制性股票，还涉及到董事、高管与公司产生关联交易，公司还需要另外聘请H股的独立财务顾问对该事项发表正式意见，并随股东大会通函一并发出。
2. 原则上在A股实施股权激励应同时适用两地的监管规则，但由于A股和H股两地上市规则的差异，可能会遇到股权激励方案的个别条款无法同时满足两地规则，公司应提前做好两地监管沟通。
3. 充分做好股东大会前股东沟通解释工作。由于H股股东识别与A股存在很大差异，股权激励方案除了获公司股东大会审议通过，还要获得A\H类别股东会通过，建议上市公司应提前做好股东识别及投资者沟通工作，取得股东及投资者的理解和支持，必要时聘请相关专业机构协助。

4. 管理优化

做好市场和同行动态跟踪、股权激励行权数据分析、效果评估等，总结问题和经验，为新一期股权激励计划做好准备。

眭立女士  
广汽集团董事会秘书