Following the implementation of Gree’s previous policy of allocating employee housing, the employee stock ownership plan planned this time has finally been released!
On the evening of June 20, Gree Electric announced the first phase of the employee stock ownership plan. The total number of employees who intend to participate in the employee stock ownership plan does not exceed 12,000. The capital scale of the employee stock ownership plan does not exceed 3 billion yuan, accounting for the company’s total share capital. 1.8%, the purchase price is 27.68 yuan/share, which is 50% of the average price of the repurchased shares.
The employee stock ownership plan involves as many as 12,000 people, almost involving company executives, middle-level cadres and employees in key positions. It is the largest employee stock ownership plan in Gree’s history, and in accordance with the previously planned 3% employee stock ownership plan, There may be a second issue next.
Over the years, Gree Electric has made continuous moves, from the introduction of Hillhouse Capital to the implementation of multiple share repurchases. Now Gree Electric has announced the first phase of its employee stock ownership plan.
However, reading this employee stock ownership plan one by one will reveal the more interesting aspects.
First of all, Gree Electric had a closing price of 53.68 yuan as of June 18 this year. In other words, The subscription price of the employee stock ownership plan is only 27.68 yuan per share, which is only half of the current stock price.
If analyzed from the perspective of investors in the secondary market, the subscription price is obviously very low. The employee subscription price is directly half of the transaction price on the secondary market, and investors who buy through the secondary market are certainly not willing.
It also shows that if Dong Mingzhu sells shares at the current price, he will easily realize huge gains.
Secondly, Gree Electric’s chairman Dong Mingzhu plans to subscribe for 30 million shares, with an investment of 830 million yuan; and 11992 middle-level cadres and core employees will subscribe for 74,685,800 shares, that is, 6,227 shares per employee and 170,000 yuan per capita.
If you don’t analyze it carefully, it may seem like “manpower has a share”, but according to incomplete statistical data, it seems to be different.
As of 2020, Gree Electric has approximately 88,000 employees. If no more than 12,000 people can participate in the employee stock ownership plan, about 14% of employees should be able to participate in the employee stock ownership plan. In other words, only some employees can enjoy this employee stock ownership plan. These employees are more likely to be Gree’s management, core backbone, outstanding employees, etc. Gree intends to deeply bundle high-quality talents through the employee stock ownership plan.
That is to say, only when the Gree station is “high enough”, will there be this good news. Moreover, although this shareholding plan stipulates that employees can subscribe for Gree Electric’s shares at a 50% discount, Gree’s The employee stock ownership plan also sets a strict performance appraisal period. The evaluation indicators of the employee stock ownership plan are divided into company performance evaluation indicators and individual performance evaluation indicators. Among them, the company’s performance evaluation indicators are as follows: The lock-in period of the employee plan is 12 months, and the company’s performance evaluation indicators are based on 2020 as a reference benchmark. Among them, the company’s performance appraisal indicators are: the net profit of 2021 is compared with that of 2020 Increase not less than 10% , And the current year’s cash dividend per share shall not be less than 2 yuan or the total cash dividend shall not be less than 50% of the current year’s net profit; the net profit in 2022 will increase by not less than 20% compared to 2020, and the current year’s cash dividend per share shall not be less than 2 The total amount of RMB or cash dividends shall not be less than 50% of the net profit for the year. Gree Electric stated that the first assessment vesting period expires, and if the company’s performance assessment indicators do not meet the standard, the combined assessment will be deferred to the second assessment vesting period. If after the expiration of the second assessment vesting period, the company’s performance assessment fails to meet the standards, the management committee will make a decision to dispose of it, including cancellation or sale of stocks at an opportunity, etc., and the original capital contribution paid by the corresponding holder will be returned to the limit , The remaining income (if any) is returned to the company. That is, if the company’s performance evaluation indicators are not completed, everyone will not be able to enjoy the rights; if the company’s performance evaluation indicators are met, and the individual performance evaluation does not meet the standards, the individual will not be able to enjoy the rights. In addition, this provision is also mentioned in the employee stock ownership plan: Based on the needs of employees to increase stock appreciation gains and participate in corporate governance through centralized management, the holders of this employee stock ownership plan promise and authorize that they will directly hold the stock rights of this employee stock ownership plan before retiring from the company to their personal securities accounts. For some stocks, the union shall exercise the voting rights according to the will of the union (excluding the voting rights of the shares held by directors, supervisors, and senior managers). Without the prior written confirmation of the union, the union shall not sell or set a pledge on its own, otherwise the union has the right to withdraw it. The corresponding share income, related income is managed by a special account set up by the trade union and enjoyed by other holders, and the specific distribution method is democratically determined by the holders. To put it simply, Gree stated that this employee plan requires the holder’s commitment and authorization, and it is not possible to withdraw at will. The company enjoys the right to dividends before retirement, and the ban on sales can be lifted after retirement. As a result, it also largely restricts the behavior of employees selling stocks at will. It seems that in the face of this seemingly good employee stock ownership plan, Gree has many barriers to get it. Having said that, Gree’s “boots are on the ground” when it allocates employee housing some time ago to be delivered soon, but this time reading the content of Gree’s latest announcement, it is not difficult to see a big change in attitude. What’s more noteworthy is that Gree’s share price has fallen by four percentage points as of 11 am today. Gree’s market trend today clearly shows The capital market’s opposition to employee stock ownership plans. Finally, I would like to mention that this time the employee stock ownership plan, Dong Mingzhu made a floating profit of 800 million, Who is the big winner in the end? People may have thought of it…
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