Unlike other incentive schemes of listed securities companies in the near future, the scheme of Orient Securities is only carried out by H shares. From the perspective of market performance, after the release of the draft, H shares of Oriental securities rose in all three trading days from the night of June 18 to 22.
On June 22, Dongfang securities told time weekly that the announcement shall prevail.
Buy back H shares at 40% discount to a shares
According to the draft, the subscription proportion of directors, supervisors and senior executives of the company is no less than 7% of this employee stock ownership plan, and the total subscription proportion of other employees is 93%. The lock-in period of employee stock ownership plan to purchase the target stock is 12 months, and huitianfu fund is the asset management organization.
In terms of capital source, it includes legal salary, self financing and other ways permitted by laws and regulations. The stock source is to purchase H shares in the secondary market.
Why choose H share?
On June 21, an analyst from a large securities firm in Shanghai told the times weekly that the ah share price of the same securities firm is usually higher for a shares, while buying H shares for employee shares can hold the companys shares at a lower cost, which is more cost-effective.
The reporter of time weekly found on June 22 that among the 12 A + H-share securities companies, the share price of A-share is all higher than that of H-share, and the largest share price ratio of ah is 4.84 times that of CSC (601066. SH). -
But whether lower prices represent more room for future growth is not necessarily because these are two markets with different styles, and the overall valuation of Hong Kong stocks is generally lower than that of a shares. According to the above-mentioned people, in terms of the closing price on June 22, the Pb value of a shares of Oriental Securities is 1.22 times, while the Pb value of H shares is only 0.49 times.
More than 1000 times of equity incentive in A-share company
Wind data also shows that since this year, A-share listed companies have issued 1337 equity incentive plans, and 71 listed companies have promoted 72 employee stock ownership plans, 24 of which have been implemented.
As early as June 2014, the CSRC issued the guiding opinions on the pilot implementation of ESOP by listed companies and proposed the pilot implementation of ESOP by listed companies.
In May 2019, the CSRC issued a letter on supporting securities companies to implement employee stock ownership and equity incentive plan in accordance with the law, supporting securities companies to implement employee stock ownership plan, and pointed out that it should be carried out in accordance with the requirements and through asset management plan in accordance with the law.
As a talent intensive industry, equity incentive or employee stock ownership plan of listed securities companies is more practical, but compared with other listed companies, the promotion of equity incentive of securities companies has its particularity: on the one hand, it is limited by the obstacles of financial enterprises and state-owned enterprise structure; on the other hand, it is restricted by the restriction that securities practitioners cannot hold shares. However, after the implementation of the new securities law, the situation has changed. On June 22, an investment banker from a medium-sized securities firm in Beijing told time weekly.
The new securities law makes it clear that employees of a securities company that implements an equity incentive plan or an employee stock ownership plan may, in accordance with the provisions of the securities regulatory authority under the State Council, hold or sell shares of the company or other securities of an equity nature. This content undoes the institutional shackles for stock incentive of securities companies.
5. Listed securities companies promote incentive plan
Since this year, a number of securities companies have promoted equity incentive or employee stock ownership plans. In June alone, four have announced their progress. In addition to Orient Securities, there are Guotai Junan (601211. SH), Huatai Securities (601688. SH) and Guoyuan securities (000728. SZ).
Compared with employee stock ownership plan, which is usually realized by asset management plan, Guotai Junans direct equity incentive is more exemplary.
On June 7, Guotai Junan issued the A-share restricted stock incentive plan (Draft), becoming the first securities firm to launch the equity incentive plan since the implementation of the new securities law. It plans to directly grant no more than 89 million shares to 451 senior executives and core backbones. This is another listed securities company that plans to directly provide equity incentive for employees after CITIC Securities (600030. SH) implemented equity incentive for a few senior managers many years ago.
It is understood that the source of the underlying stock is the companys A-share repurchased from the secondary market, and the grant price is half of the current price. As of June 18, Guotai Junan has repurchased 45.67 million shares in total, and the repurchasing scale has reached the lower limit of the original planned scale.
For this equity incentive plan, Guotai Junan said that in order to further improve the corporate governance structure of the company, realize the long-term incentive and restriction on executive directors, senior executives and other core backbones, fully mobilize their enthusiasm and creativity, make their interests more closely combined with the long-term development of the company, prevent brain drain, and realize the sustainable development of the enterprise.
On June 18, Shen Juan, a non-bank financial analyst at Huatai Securities, pointed out that the number and price of equity incentive grants are considerable, and the incentive effect is significant. At the same time, Guotai Junan has set up a segmented limited sale period and diversified assessment mechanism for equity incentive, which is conducive to fully activating the subjective initiative of the incentive objects.
Huatai Securities also disclosed the latest progress of equity incentive on June 3. As of May 31, the company has repurchased 40.7198 million a shares through centralized bidding, which cost 721 million yuan. According to the companys previous announcement, this share buyback will serve as the stock source of the equity incentive plan.
In addition, on June 17, Guoyuan securities revised the original ESOP due to changes in regulatory provisions. It is worth mentioning that the plan originated from the stock market crash in September 2015, and is still in a floating loss state.
The employee stock ownership plan of China Merchants Securities (600999. SH) has been implemented within the year. On March 3, the stock transfer procedures were completed, accounting for 0.6% of the total share capital of the company, with 995 participants. What kind of incentive plan is more beneficial to the development of employees and the company? In this regard, the aforementioned investment bankers said that from the three indicators of the scale of employee stock ownership plan, the proportion of directors, supervisors and senior executives to subscribe, and the average subscription share of a single employee, the higher the ratio is, the more conducive to the realization of the companys long-term interests and the high binding of the interests of the management and employees, and the stronger help for the company to stabilize talents and realize development. At present, in terms of scale indicators, Huatai Securities plans to buy back no more than 2.615 billion yuan, ranking first; among the shares that have been bought back, Guotai Junan ranks first with 870 million yuan. Source: responsible editor of times weekly: Wang Xiaowu_ NF
The employee stock ownership plan of China Merchants Securities (600999. SH) has been implemented within the year. On March 3, the stock transfer procedures were completed, accounting for 0.6% of the total share capital of the company, with 995 participants.
What kind of incentive plan is more beneficial to the development of employees and the company?
In this regard, the aforementioned investment bankers said that from the three indicators of the scale of employee stock ownership plan, the proportion of directors, supervisors and senior executives to subscribe, and the average subscription share of a single employee, the higher the ratio is, the more conducive to the realization of the companys long-term interests and the high binding of the interests of the management and employees, and the stronger help for the company to stabilize talents and realize development.