Original title: The first phase of 1 billion equity incentive plan of Yanghe shares released 5,100 core backbones are expected to be upgraded to “business partners”
Our reporter Cao Weixin
Yanghe’s long-prepared equity incentive plan was officially unveiled. On July 16, the “Phase I Core Key Shareholding Plan (Draft)” disclosed by Yanghe Co., Ltd. showed that the plan holds no more than 9.66 million shares, and the total amount of funds to be raised is capped at 1.02 billion yuan. The source of stocks The total number of A-share common stocks repurchased for the company’s repurchase special account shall not exceed 5,100 persons participating in this shareholding plan. As of the end of 2020, the total number of employees in Yanghe shares was 15,800, and the number of participants in the shareholding plan accounted for 32.22% of the total number of employees.
Regarding this equity incentive plan, many industry experts believed in an interview with a reporter from the Securities Daily that equity incentives can effectively bind the interests of employees and the interests of the enterprise and stimulate the vitality of enterprise development.
The first equity incentive plan launched in 12 years of listing
Established in 1949, Yanghe Co., Ltd. is a large-scale liquor manufacturer in China. It owns two Chinese famous liquors, Yanghe and Shuanggou, two Chinese time-honored brands, and six well-known Chinese trademarks. The company’s leading products include Mengzhilan, Tianzhilan, Haizhilan, Su Jiu, Zhenbaofang, Yanghe Daqu, Shuanggou Daqu and other series of liquors, enjoying high brand awareness and reputation in the market.
“Securities Daily” reporter noted that this equity incentive plan is the company’s first equity incentive plan since its listing in 2009. According to the plan, the range of people participating in the shareholding plan includes the company’s directors (excluding independent directors), supervisors, senior managers, as well as the company and its wholly-owned subsidiaries who are recognized by the board of directors as having an important role in the company’s overall performance and medium- and long-term development. And above personnel and core backbone.
From the perspective of shareholding ratio, the company’s new chairman Zhang Liandong, vice chairman and president Zhong Yu, and director and executive president Liu Huashuang all intend to hold 10 million shares, each accounting for 1% of the shareholding plan; director and vice president , Chief Engineer Zhou Xinhu, Chairman of the Board of Supervisors Chen Taiqing, and other 9 people intend to hold 5 million shares; Assistant President Zhang Xueqian and Song Zhimin intend to hold 3 million shares; Board Secretary Lu Hongzhen intends to hold 2 million shares. The above-mentioned 15 executives hold a total of 8.28% of the shares, and the remaining no more than 5,085 other core backbones hold 91.72% of the shares. Each share is 1.00 yuan, the upper limit of the shareholding plan is 1.02 billion shares, and the total amount of funds does not exceed 1.02 billion yuan.
The shareholding plan to purchase the repurchased shares is at an average price of 103.73 yuan per share for the company to repurchase shares. According to the announcement, from 2019 to 2020, the company repurchased 9,661,300 shares of the company through a centralized bidding transaction through a dedicated securities account for repurchase, accounting for 0.64% of the company’s total share capital. The highest transaction price was 131.99 yuan per share, and the lowest transaction price It is 80.37 yuan/share, and the transaction amount is 1.02 billion yuan (including transaction costs).
Speaking of this equity incentive plan, Pan Helin, Executive Dean of the Digital Economy Research Institute of Zhongnan University of Economics and Law, said in an interview with a reporter from the Securities Daily, “Through equity incentives, the backbone of listed companies and the operations of listed companies are bound to give full play to The incentive effect can help listed companies achieve their performance in the next few years, which is beneficial to corporate development and can stimulate corporate vitality in the short term. Yanghe shares have not fluctuated much in profit in recent years, and it is a mature company. It is recommended that it can be segmented in the specific implementation process. The implementation of equity incentives will further refine the stage’s profit targets.”
Binding 15% performance growth target
The announcement shows that the duration of the shareholding plan is 36 months, and the lock-up period of the acquired stocks is 24 months. After the lock-up period expires, the stock rights held in this shareholding plan will be disposed of based on the company’s performance target assessment results. For employees involved in holding shares, if they want to obtain the rights and interests after holding shares, they need to pass the “performance barrier” first.
According to the plan design, this shareholding plan has performance evaluation requirements: the company’s operating income in 2021 will increase by no less than 15% compared with 2020, and the operating income in 2022 will increase by no less than 15% compared with 2021.
The 2020 annual report shows that Yanghe’s operating income last year was 21.101 billion yuan. Based on this calculation, in order to meet the performance appraisal requirements, Yanghe’s operating income in 2021 will be at least 24.266 billion yuan.
“Yanghe Co., Ltd. intends to launch the first phase of the core backbone shareholding plan, which intends to use equity incentives to build an entrepreneurial mechanism of shared, co-creation, and win-win, so that employees and the company form a community of interests, and promote the healthy growth of both “In the view of China Food Industry Analyst Zhu Danpeng, “If the performance evaluation indicators are not met, all the underlying stock rights held by this shareholding plan will be recovered by the management committee. This goal is a challenge for Yanghe shares. , It is a manifestation of its spirit of’second entrepreneurship’.”
Zhu Danpeng believes: “The liquor industry will usher in an inflection point. Major liquor companies must make breakthroughs in product structure, operating mechanism, and talent management. Yanghe shares have the courage to challenge themselves.”
How to effectively arouse the enthusiasm of employees and complete performance evaluation goals? Jiang Han, a senior researcher at Pangu Think Tank, suggested in an interview with reporters that “Yanghe shares must complete performance appraisal, the core approach should be to continue to maintain its advantages in the original relatively advantageous market, and to further strengthen other aspects of diversified market development. , To promote the competitiveness of the entire market through competition in diversified markets.”
“On the one hand, we can open up new markets and fields beyond the non-traditional advantageous markets; on the other hand, we can work hard on research and development. We can try to develop some special new brands or new products that are more popular with young people. Consider Further change the original method and improve production efficiency.” Jiang Han added.