On April 22, Byd Company Limited(002594) ( Byd Company Limited(002594) . SZ) announced that the company plans to repurchase shares for the employee stock ownership plan. It is estimated that the repurchase amount will not exceed 1.85 billion yuan, not less than 1.8 billion yuan, and the repurchase price will not exceed 300 yuan / share. The type of shares to be repurchased is RMB common shares (A shares) issued by the company.
At the same time, Byd Company Limited(002594) also disclosed the 2022 employee stock ownership plan (Draft) (hereinafter referred to as the draft). The draft shows that the total number of people participating in the ESOP will not exceed 12000. The ESOP will transfer the company’s shares to be repurchased by the company through non transaction transfer and other ways permitted by laws and regulations. The transfer price is 0 yuan / share, and the participants do not need to contribute.
Haothrow 1.8 billion yuan to buy back shares, and the price of 0 yuan / share is transferred to employees. Behind Byd Company Limited(002594) this measure, attracting and retaining excellent talents and fully mobilizing the enthusiasm of core backbone personnel are undoubtedly one of the important reasons. The competition in the automobile industry is becoming more and more fierce, and the talent defense war of automobile enterprises is upgraded. In recent years, the rapidly rising new forces of car manufacturing and cross-border technology companies use high salaries and equity incentive mechanisms to grab market share and high-end talents from traditional car enterprises, forcing traditional car enterprises to accelerate reform, deal with organizational competition and prevent the loss of core personnel.
plans to repurchase shares of no less than 1.8 billion yuan and promote “0 yuan purchase” employee stock ownership
In fact, equity incentive, share award, employee stock ownership and other incentive mechanisms have long existed in the automotive industry. However, Byd Company Limited(002594) this time launched “0 yuan purchase” employee stock ownership, which is not common in the automotive industry.
According to the announcement, under the condition that the price of repurchased shares does not exceed 300 yuan / share, the number of repurchased shares is expected to be no less than 6.1667 million shares, accounting for about 0.212% of the total issued share capital of the company according to the calculation of the upper limit of repurchased amount of 1.85 billion yuan; According to the calculation of the lower limit of the repurchase amount of RMB 1.8 billion, the number of shares repurchased is expected to be no less than 6 million, accounting for about 0.206% of the total issued share capital of the company. The specific number of shares repurchased is subject to the actual number of shares repurchased at the expiration of the repurchase period.
Based on the closing price of Byd Company Limited(002594) shares of 234.04 yuan / share on April 21, the number of underlying shares involved in the employee stock ownership plan does not exceed 7.9046 million shares (accounting for 0.27% of the current total share capital of the company).
This share repurchase is used to implement the employee stock ownership plan. The total number of participants in the ESOP is no more than 12000, and the participants include the company’s employee representative supervisors and senior managers (14 in total), as well as the middle-level managers and core backbone employees of Byd Company Limited(002594) group (no more than 11986). In terms of distribution proportion, there are 14 employee representatives, supervisors and senior managers, and 553300 shares are proposed to be distributed, accounting for 7% of the total share; Other employees plan to distribute about 7.3513 million shares, accounting for 93% of the total share.
The employee stock ownership plan will transfer the company’s shares to be repurchased by the company through non trading transfer and other ways permitted by laws and regulations. The transfer price is 0 yuan / share, and the participants do not need to contribute. If the transfer cannot be completed within 36 months after the completion of share repurchase, the unused shares will be cancelled and the registered capital will be reduced according to relevant procedures.
Byd Company Limited(002594) employee stock ownership plan covers the core employees of technology, operation, marketing, comprehensive and other positions of the group Byd Company Limited(002594) said that this group of employees is the main executor of the company’s strategy and the mainstay of the team, which plays a vital role and influence on the company’s overall performance and long-term sustainable and stable development. This will help the company establish and improve the benefit sharing mechanism, improve the cohesion of employees and the competitiveness of the company, realize the long-term sustainable development of the enterprise, further enhance the value of the company, bring sustained and stable returns to shareholders and maximize the interests of shareholders.
will be unlocked in three phases, with a 30% revenue growth in 2022
It is worth noting that Byd Company Limited(002594) also sets performance evaluation standards and trading restrictions for employee stock ownership plans.
The draft stipulates that the underlying shares held by the employee stock ownership plan will be unlocked in three phases. The unlocking time points are 12 months, 24 months and 36 months from the date when the company announces the last transfer of the underlying shares to the name of the employee stock ownership plan. The proportion of the underlying shares unlocked in each phase is 30%, 30% and 40% respectively. The specific unlocking proportion and quantity of each period shall be determined according to the results of the company’s performance assessment and individual performance assessment.
The employee stock ownership plan takes three fiscal years from 2022 to 2024 as the performance evaluation year, which is evaluated once in each fiscal year. The operating income of the previous year is the base, and the annual revenue growth rate is not less than 30%, 20% and 20% respectively.
The announcement points out that if the company’s performance appraisal indicators are met, the underlying stock rights and interests corresponding to each period of the employee stock ownership plan can be unlocked. If the performance evaluation index of the company corresponding to an unlocking period is not reached, the underlying stock rights and interests corresponding to the unlocking period shall not be unlocked and shall be recovered by the company at the price of 0 yuan.
According to the annual performance report of 2021 disclosed by Byd Company Limited(002594) previously, the operating revenue in 2021 was 216142 billion yuan, a year-on-year increase of 38.02%; The net profit attributable to shareholders of listed companies was 3.045 billion yuan, a year-on-year decrease of 28.8%. This also means that in order to realize the first unlocking, Byd Company Limited(002594) this year’s revenue shall not be less than 280985 billion yuan.
On April 18, Byd Company Limited(002594) released a performance forecast, which showed that the company’s net profit attributable to shareholders of Listed Companies in the first quarter of this year was expected to be about 650950 million yuan, with a year-on-year increase of 174% – 300%.
It should be noted that Byd Company Limited(002594) ESOP has been reviewed and approved by the board of directors of the company, but it can only be implemented after being approved by the general meeting of shareholders.
car enterprise talent defense upgrade
The competition in the automotive industry is becoming more and more fierce. The new forces of car making that once played the role of subverter, as well as the cross-border technology companies have started the talent competition with high salary and equity incentive mechanism. In recent years, a large number of high-end talents in the industry have joined the team of new car making, and the traditional car enterprises are facing the state of “blood loss”.
Earlier, it was reported that Gu Hongdi, President of Xiaopeng automobile, had an annual salary of 435 million yuan. Xiaopeng automobile responded that more than 99.5% of the salary disclosed by the executive was equity incentive accumulated for many years, not the income in a year. The actual annual salary of the executive was more than 2 million yuan. However, it is not difficult to see the great temptation of equity incentive of new forces of car making.
The new forces of car making are rising rapidly, seizing market share and high-end talents from traditional car enterprises, forcing traditional car enterprises to accelerate reform, deal with organizational competition, and prevent the loss of core personnel.
Haotou repurchased 1.8 billion shares and transferred them to employees at the price of 0 yuan / share. Behind Byd Company Limited(002594) this measure, attracting and retaining excellent talents and fully mobilizing the enthusiasm of core backbone personnel are undoubtedly one of the important reasons.
In fact, in order to retain talents, Guangzhou Automobile Group Co.Ltd(601238) , Saic Motor Corporation Limited(600104) , Chongqing Changan Automobile Company Limited(000625) , Great Wall Motor Company Limited(601633) , Geely Automobile and other listed companies have previously implemented shareholding mechanisms for senior executives and key personnel, or mixed equity reform, employee stock ownership and so on. In March this year, gac-e’an disclosed the latest progress of mixed reform, implemented equity incentive for 679 employees by means of capital increase through non-public agreement, and 115 scientific and technological personnel of GAC Research Institute held equity of gac-e’an in the way of “upper holding and lower holding” (employees of superior companies hold equity of subordinate companies).
Some analysts pointed out that in the process of transformation to electrification and intelligence, the competition for medium and high-end talents tends to be fierce, and the core of equity incentive is to retain talents and help employees achieve deeper binding with the company.
A headhunter told the 21st Century Business Herald reporter, “at present, there is a shortage of high-end talents in the automotive industry, especially those with automatic driving and perceptual algorithms. Many new car companies try their best to give very attractive treatment to dig people from traditional car enterprises. We are almost robbing people from all walks of life, Internet enterprises on the software side and intelligent manufacturing enterprises on the hardware side.”
According to the data, the total number of employees in China’s automobile industry is about 5.5 million, of which 550000 are engaged in R & D, while the total number of R & D personnel of intelligent networking technology is only 50000. With the development of intelligent networked automobile industry, the industry’s desire for software talents is becoming more and more urgent. According to the forecast report on the talent demand of intelligent connected vehicles, there is an extreme lack of compound talents who understand cars and software. It is estimated that the net talent gap of intelligent connected vehicles will be 37000 in 2025 (under the situation of rapid development), which is 69.4% of the current stock of intelligent connected vehicle R & D personnel.
“The talent war is very fierce, and it is common for car companies to dig people. We receive the information of high salary digging people at least twice a month.” In an interview with 21st Century Business Herald, a senior executive of a new energy vehicle said that when the development direction is correct, talents are one of the key factors. In the face of the development trend of new energy vehicles, automobile enterprises have adopted a series of incentive mechanisms to promote key talents such as technology R & D backbone and senior management to form a community of interests with enterprises.
