Plan allows firms to offer shares to workers
Source: Xinhua |
August 6, 2012, Monday
|
Print Edition
Print Edition
CHINA'S securities regulator yesterday issued a draft regulation for listed companies to offer shares to employees, a move aiming to make more staff benefit from stock ownership.
According to the draft released by the China Securities Regulatory Commission, an employee stock ownership plan allows listed firms to buy their own shares on the secondary market through an asset management agency with a designated part of their employees' cash compensation.
Employees can participate in the plan voluntarily and get share entitlements according to a distribution agreement, said the draft, which is open for public opinions until August 17.
The employee stock ownership plan is expected to help increase efficiency of listed companies. Such plans are widely used in mature securities markets. China had previously introduced plans that encouraged only senior executives to own stakes in listed companies.
According to the draft, the funds drawn from an individual worker should be no more than 30 percent of his past 12-month compensation, including salary and bonus, and less than one-third of the financial assets of the employee's family.
The shares have to be held for at least 36 months, the draft said.
The ESOP fund can hold no more than 10 percent of a listed company and an individual worker can not own more than a 1 percent stake, according to the draft.
The draft also states that ESOP funds should be entrusted to an independent asset manager.
According to the draft released by the China Securities Regulatory Commission, an employee stock ownership plan allows listed firms to buy their own shares on the secondary market through an asset management agency with a designated part of their employees' cash compensation.
Employees can participate in the plan voluntarily and get share entitlements according to a distribution agreement, said the draft, which is open for public opinions until August 17.
The employee stock ownership plan is expected to help increase efficiency of listed companies. Such plans are widely used in mature securities markets. China had previously introduced plans that encouraged only senior executives to own stakes in listed companies.
According to the draft, the funds drawn from an individual worker should be no more than 30 percent of his past 12-month compensation, including salary and bonus, and less than one-third of the financial assets of the employee's family.
The shares have to be held for at least 36 months, the draft said.
The ESOP fund can hold no more than 10 percent of a listed company and an individual worker can not own more than a 1 percent stake, according to the draft.
The draft also states that ESOP funds should be entrusted to an independent asset manager.
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