Equity zero yuan, an employee stock ownership plan disclosed by Byd Company Limited(002594) recently has aroused widespread controversy in the market.
On April 22, Byd Company Limited(002594) announced that it planned to repurchase no more than 1.85 billion yuan and no less than 1.8 billion yuan Byd Company Limited(002594) shares for the employee stock ownership plan. According to the employee stock ownership plan released by Byd Company Limited(002594) synchronously, the total number of participants in the employee stock ownership plan is no more than 12000, but the transfer price is 0 yuan / share. As long as the participants complete the performance appraisal, they don’t need to give a penny.
In this regard, some netizens said that the equity incentive without paying has changed things. Equity incentive has become a disguised welfare, which is detrimental to the interests of minority shareholders. Some netizens also said that in order to retain talents, Byd Company Limited(002594) push 0 yuan equity incentive is not wrong. Equity incentive is conducive to stimulate the enthusiasm of employees and promote the long-term development of the enterprise.
As of the latest closing, Byd Company Limited(002594) reported 235.4 yuan / share, with a total market value of 634.6 billion yuan.
Byd Company Limited(002594) equity 0 yuan to send dispute
At the beginning of this year, Fujian Forecam Optics Co.Ltd(688010) equity incentive was given zero yuan, and Sto Express Co.Ltd(002468) 1 yuan “fracture price” equity incentive once attracted great attention in the market. Now Shanxi Guoxin Energy Corporation Limited(600617) car enterprises Byd Company Limited(002594) will also launch zero yuan equity incentive, which has aroused heated discussion in the market.
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The participants of the employee stock ownership plan include the employee representative supervisors and senior managers of the company, as well as the middle-level managers and core backbone employees of Byd Company Limited(002594) group. The total number of employees participating in the stock ownership plan shall not exceed 12000.
Specifically, the participants of the employee stock ownership plan include 14 employees, including Wang Zhen, Tang Mei, the company’s employee supervisor, Li Ke, Lian Yubo, he long, Liu Huanming, Luo Hongbin, Wang Chuanfang, Ren Lin, Wang Jie, he Zhiqi, Zhou Yalin, Yang Dongsheng and Li Qian, and no more than 11986 other employees.
In terms of distribution proportion, the proposed distribution share of the above 14 directors, supervisors and senior executives accounts for 7%. According to the calculation of the repurchase amount of 1.8 billion, the 14 directors, supervisors and senior managers are equivalent to an average of 9 million yuan of shares free of charge, and other employees can also get nearly 140000 yuan of shares on average.
It is worth mentioning that while the price of the employee stock ownership plan is determined to be 0, the lock-in period of the employee stock ownership plan is also set, as well as the indicators of the company’s performance appraisal and individual performance appraisal required to unlock.
Byd Company Limited(002594) this ESOP has set three unlocking periods. The unlocking time points are 12 months, 24 months and 36 months from the date when the company announces the transfer of the last subject stock to the name of the ESOP. The proportion of the subject stock unlocked in each period is 30%, 30% and 40% respectively.
The unlocking condition is that the first unlocking period takes the operating revenue in 2021 as the base, and the growth rate of operating revenue in 2022 is not less than 30%; The second unlocking period is based on the operating revenue in 2022, and the growth rate of operating revenue in 2023 shall not be less than 20%; The third unlocking period is based on the operating revenue in 2023, and the growth rate of operating revenue in 2024 is not less than 20%.
Byd Company Limited(002594) said that the setting of performance appraisal indicators is challenging, which can fully convey the company’s vision for future performance growth, help to improve employees’ work enthusiasm, sense of responsibility and belonging, and form a positive linkage of mutual promotion of the interests of the company, shareholders and employees, so as to promote the reliable realization of the company’s development goals.
Statistics show that from 2017 to 2021, Byd Company Limited(002594) operating revenue increased slightly by 2.36%, 22.79%, – 1.78%, 22.59% and 38.02% year-on-year.
plans to buy back 1.8 billion shares for equity incentive
Byd Company Limited(002594) all the underlying shares involved in this ESOP come from all the shares to be repurchased in the stock repurchase plan issued on April 22.
On April 22, Byd Company Limited(002594) issued an announcement on share repurchase, saying that the company plans to repurchase no more than 1.85 billion yuan, no less than 1.8 billion yuan, and the repurchase price is no more than 300 yuan.
Under the condition that the price of repurchased shares does not exceed 300 yuan / share, according to the calculation of the upper limit of repurchased amount of 1.85 billion yuan, the number of repurchased shares is expected to be no less than 6166700 shares, accounting for about 0.212% of the total issued share capital of the company; 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.
It is worth mentioning that the share repurchase plan is the first repurchase plan issued since Byd Company Limited(002594) listing, and the source of repurchase funds is the company’s own funds.
Since the beginning of this year, as the speculation of new energy and other track stocks has cooled down, the A-share Byd Company Limited(002594) share price has also dropped significantly, from the highest of about 280 yuan at the beginning of the year to the lowest of about 200 yuan. Recently, the company’s share price has rebounded, and the latest closing price is 235.4 yuan. At this time, the issuance of the share repurchase plan will not only help the stability of the company’s shares, but also reduce the implementation cost of equity incentive.
The company said that driven by the dual carbon target and market demand, China Shanxi Guoxin Energy Corporation Limited(600617) automobile industry is in a period of rapid development, rapid iteration of technology and products, continuous enhancement of endogenous drive of new energy vehicles and continuous improvement of market penetration. In order to further activate the company’s technological innovation ability, maintain the industry competitive advantage and promote the company’s long-term sustainable development, the company plans to repurchase shares for the employee stock ownership plan, continuously improve the long-term incentive and restraint mechanism of mutual benefit and win-win results, effectively combine the interests of shareholders, the company and the core team and personal interests, and improve the overall value of the company.
“0 yuan purchase” is reasonable Byd Company Limited(002594) : there is no situation damaging the interests of the company and all shareholders
In recent years, the enthusiasm of listed companies for equity incentive and employee stock ownership plan has become increasingly high.
However, in the process of equity incentive and the implementation of employee stock ownership plan, equity incentive of “cabbage price” and “low assessment” also appeared, which caused hot discussion in the market.
At the beginning of this year, Fujian Forecam Optics Co.Ltd(688010) launched the “0 yuan purchase” employee stock ownership plan. The company plans to use the company to repurchase A-share common shares in the special account, with a scale of no more than 120000 shares, and 0 yuan will be transferred to 10 directors, supervisors and 71 key employees of the company for equity incentive.
Surprisingly, the employee stock ownership plan does not set performance assessment requirements at the company level, which can not help but raise questions in the market. Is the listed company “encouraging” or “welfare”.
Subsequently, the Shanghai Stock Exchange issued a regulatory letter on Fujian Forecam Optics Co.Ltd(688010) ‘s employee stock ownership plan, requiring the company to explain the main considerations of the employee stock ownership plan’s acquisition of repurchased shares at zero consideration, and fully evaluate whether this arrangement meets the basic principle of “taking sole responsibility for profits and losses, taking sole risks and equal rights and interests with other investors” in the guiding opinions on the pilot implementation of employee stock ownership plan by listed companies, What measures does the company plan to take to further closely bind the interests of employees and the interests of the company, and effectively protect the interests of shareholders, especially minority shareholders.
Fujian Forecam Optics Co.Ltd(688010) then revised the draft employee stock ownership plan, and adjusted the previous “shares repurchased by the company are transferred at zero price” and “no capital contribution from the Transferee” to “the transfer price is 10 yuan / share”.
This time, Byd Company Limited(002594) zero yuan employee stock ownership plan has also aroused widespread concern in the market Byd Company Limited(002594) gives the explanation that “in order to promote the long-term development of the company, safeguard shareholders’ rights and interests, fully mobilize the enthusiasm and creativity of the holders, improve the cohesion of employees and the competitiveness of the company, refer to relevant policies and market practice, and comprehensively consider the actual situation of industry competition and company development, the company determines the transfer price of the employee stock ownership plan as 0 yuan / share.”
According to Byd Company Limited(002594) announcement, the participants of the employee stock ownership plan include the employee representative supervisors and senior managers of the company, as well as the middle-level managers and core backbone employees of Byd Company Limited(002594) group. It covers the core employees of various positions of the group, such as technology, operation, marketing and integration. It is the main executor of the company’s strategy and the mainstay of the team, It plays a vital role and influence on the company’s overall performance and long-term sustainable and stable development.
For the query of netizens, Byd Company Limited(002594) said that the pricing principle of the employee stock ownership plan is reasonable and scientific, and there is no situation that damages the interests of the company and all shareholders.
