Haier launches stock option plan
By Wang Lan (China Daily)Updated: 2006-12-26 10:37 SHANGHAI: Qingdao Haier, a home appliance arm of Haier Group, announced yesterday it has mapped out a stock option incentive plan to reward management and gather steam for the enterprise's long-term development.
The State-owned giant is set to grant 80 million share options, amounting to
6.69 per cent of the company's existing share capital, to its senior managers
and selected staff. Each share is offered at 7.63 yuan (98 US cents), which is
the same as the closing price at Shanghai bourse last Friday.
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Qingdao Haier stock yesterday saw a 0.57 yuan (7 US cents) increase per share to close at 8.2 yuan (US$1.025), which shows a favourable reflection from the market.
"We are becoming increasingly aware that a good connection of the interests between senior leaders and the company can help bring about the sustainable development of the company," said Ji Dong, secretary of the board of directors of Qingdao Haier, a major domestic producer of refrigerators and air conditioners.
"Qingdao Haier is among dozens of China's early-listed State-owned companies. Its top managers hold an inadequately small number of shares, which inevitably quashes the company's vitality and consequentially lowers investors' confidence in us," he added.
Employees receiving the planned share options are given seven years to exercise the scheme. Those receiving the share options will include the directors of the board, senior managers, chairman-nominated cadre staff and newly developed qualified employees.
Yang Mianmian, chairwoman of the company, will receive 3 million share
options, or 0.25 per cent of the company's capital.
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