one year later, Gree Electric Appliances Inc.Of Zhuhai(000651) ( Gree Electric Appliances Inc.Of Zhuhai(000651) ) pushed the ESOP again
On May 20, Gree Electric Appliances Inc.Of Zhuhai(000651) released the second phase of the employee stock ownership plan. The stock size does not exceed 94.728 million shares, accounting for 1.60% of the current total share capital of the company. The overall capital size does not exceed 1.55 billion yuan, and the total number of employees to be involved does not exceed 12000. The purchase price of shares is 16.36 yuan / share, which is 50% of the closing price of 32.72 yuan / share of the company the previous day.
97% for middle and primary level employees
According to the announcement, the holders of the employee stock ownership plan include the company’s directors (excluding independent directors), supervisors and senior managers, as well as the middle-level cadres and core employees of the company and its holding subsidiaries recognized by the board of directors as important to the overall performance and medium and long-term development of the company. Including 8 or 9 directors and supervisors in total.
list shows that eight directors, supervisors and senior executives, including Gree Electric Appliances Inc.Of Zhuhai(000651) director Zhang Wei, vice president Zhuang Pei, and board secretary Deng Xiaobo, each of whom plans to subscribe for 300000 shares, with a capital contribution ceiling of 4.908 million yuan, accounting for 0.32% of the plan and a total of 2.53%; The remaining 97.47% is for grass-roots cadres, core employees and technical experts of the company
The plan also stipulates that middle-level cadres and core employees who play an important role in the overall performance and medium and long-term development of the company will give priority to subscription. If there is a surplus share of the employee stock ownership plan, Dong Mingzhu, chairman and President of the company, will subscribe according to law in combination with his own situation. In other words, whether Dong Mingzhu participates in the subscription depends on whether there is a surplus of the subscription amount, which is also the reason for the uncertainty of the aforementioned “8 or 9 directors, supervisors and senior staff”.
It is worth mentioning that in the first phase of the employee stock ownership plan launched in June Gree Electric Appliances Inc.Of Zhuhai(000651) 2021, Dong Mingzhu plans to subscribe up to 30 million shares, accounting for 27.68% of the current employee stock ownership plan. However, the share purchase price of the first phase of the employee stock ownership plan is 27.68 yuan / share, while that of the second phase is 16.36 yuan / share. In other words, more Gree Electric Appliances Inc.Of Zhuhai(000651) middle and grass-roots employees will obtain the shares held by employees at a price 40% lower than that of the first phase.
What are the assessment indicators
The duration of the employee stock ownership plan is three years, of which the first year is the lock-in period and the next two years are the vesting period. According to the assessment results, the corresponding rights and interests will be vested in each holder of the employee stock ownership plan by stages, and the maximum vesting proportion of each period is 50%.
The assessment objectives of the two attribution periods are: the net profit in 2022 will increase by no less than 2 billion yuan compared with that in 2020, and the return on net assets of the company in 2022 will not be less than 22%; The net profit in 2023 will increase by no less than 3 billion yuan compared with that in 2020, and the return on net assets of the company in 2023 will not be less than 21%. At the same time, both attribution periods need to meet the cash dividend per share of the current year is not less than 2 yuan or the total cash dividend is not less than 50% of the net profit of the current year.
At the expiration of the first assessment vesting period, if the company’s performance assessment indicators do not meet the standards, all the attributable shares in the first period will be deferred to the second assessment vesting period for combined assessment. If the company’s performance assessment indicators meet the standards in the second assessment vesting period, and the sum of the net profit growth in 2022 and 2023 compared with the net profit in 2020 is not less than 5 billion yuan, the management committee will combine the individual performance assessment results of employees, The attributable distribution of the attributable stock rights and interests of the two periods.
According to the Gree Electric Appliances Inc.Of Zhuhai(000651) annual report, the net profit of the company in 2020 is 22.175 billion yuan. Based on this calculation, the net profit of the company in 2022 and 2023 will exceed 24.175 billion yuan and 25.175 billion yuan respectively, and the return on net assets index and dividend ratio of the current year shall be met accordingly.
at the same time, Gree Electric Appliances Inc.Of Zhuhai(000651) also adjusted the performance and net profit assessment indicators of the company’s phase I employee stock ownership plan, and simultaneously added the assessment indicators of return on net assets. After adjustment, the first vesting period is 2021, and the net profit will increase by no less than 1 billion yuan compared with 2020; The second vesting period is that the net profit in 2022 will increase by no less than 2 billion yuan compared with that in 2020, and the return on net assets of the company in 2022 will not be less than 22%
fill the short board of long-term incentive
The announcement also gives a detailed description of the purpose of launching the ESOP: since 2012, the company’s performance has grown steadily, and its net profit has increased from more than 7 billion yuan to more than 22 billion yuan for many consecutive years, up to 26.4 billion yuan. However, the company has not implemented any incentive measures linked to equity for 13 years, and the first phase of the ESOP was not launched until 2021, The number of people covered is only more than 4000, which is still insufficient compared with the incentive policies of other enterprises in the industry and the growing talent demand under the background of industrial diversification. The lack of long-term incentive is still a weakness in corporate governance, which is not conducive to further mobilize the initiative and creativity of employees
Gree Electric Appliances Inc.Of Zhuhai(000651) frankly, since the third quarter of 2020, the price of bulk raw materials has continued to rise sharply. The tense geopolitical situation at the beginning of 2022 continued to promote the high fluctuation of bulk commodity prices. Covid-19 epidemic broke out repeatedly. The real economy is facing the triple pressure of shrinking demand, supply shock and weakening expectation. The risks, challenges and pressures faced by the company’s production and operation have doubled.
“The long-term, stable and healthy development of the company is inseparable from the hard work of employees. In order to share the achievements of enterprise development with employees, improve employees’ enthusiasm and creativity, and ensure the realization of development strategy and business objectives, the company plans to implement the second phase of employee stock ownership plan to further improve the benefit sharing and risk sharing mechanism between shareholders and management, middle-level cadres and core employees.” Gree Electric Appliances Inc.Of Zhuhai(000651) scale.
