The evaluation index of Vanke's equity incentive plan is higher than the market level

After the 2006 vigorous launch of the equity incentive scheme failed, Vanke a (000002.SZ) again launched a new round of equity incentive plan, to 851 participants to grant 110 million shares of stock options, accounting for 1.0004% of the current total capital,　　The number of incentive targets accounted for Vanke currently 3.94% of the total number of employees. The Vanke Board of Directors October 24 announced the draft of the 2010 A-Share option incentive plan, just approved.　　Vanke is to grant the stock options, valid for 4 years, the right price in accordance with the draft incentive plan released the previous trading day of Vanke A shares close and the first 30 trading days of Vanke A shares of the average closing price of the highest is determined to 8.89 yuan. The basic right condition of Vanke's option plan is as follows: requirements for the 1th, 2, 3 year of the overall diluted net assets yield is not less than 14%, 14.5% and 15%, and the 2006-2008 restricted stock plan is not less than 12%;　　The net profit growth rate of 3 years is not less than 20%, 45% and 75%, which is equivalent to a compound growth rate of 20% per annum, whereas the 2006-2008 restricted stock plan requires a net profit annual growth rate of not less than 15%. According to the above-mentioned total stock and the right price calculation, 4 years later, Vanke management is expected to appear a number of billionaires.　　According to Vanke's semi-annual report, as of June 30, 2010, the reporting period, directors, supervisors and senior management staff held a total of 24334706 shares. But the current Vanke equity incentive plan has not disclosed the number of specific shares the management can allocate.　　Vanke's future share price and the price difference between the line will also have a huge impact on the wealth content of the personal holdings of Vanke management.　　Vanke 2008 announced the implementation of the equity incentive scheme, Vanke more than 200 equity incentives to get a total of about 55 million shares incentive shares, of which Vanke board chairman Wang Shi can get about 5.2 million shares of Vanke, according to the market value of about 36 million yuan. Vanke Incentive Program Performance evaluation indicators are significantly higher than the general level of the market, Vanke's management team to get a successful reward is not easy. It is understood that by the September this year, a share of listed companies have begun to implement the equity incentive plan, in addition to some of the early part of the incentive scheme for share reform has not set performance indicators, a total of 68 plans have corresponding performance requirements.　　Roe Index is the most common in no less than 10%, Roe more than 12% of the 9, less than the overall proportion of 15%, and more than 15% of the only 4, accounting for only 6%.　　Since Vanke's options plan is to calculate ROE, the most rigorous method of fully diluted ROE is actually more difficult to achieve than the weighted average roe commonly used in the market. Analysts pointed out that Vanke's three-year ROE Evaluation index in order 14%, 14.5% and 15%, are higher than the past 10 years fully diluted ROE of the flatAverage 13.35%, in the last 10 years, the company's performance of only 2005 years and 2007 will be up to par if the ROE is 15% in the final year.　　Therefore, from the selection of performance indicators, Vanke's equity incentive scheme of assessment is not "go through the Motions", management team to get the right to a successful line is not easy.　　Vanke's other major feature of the option plan is that the company clearly proposed performance growth indicators will be adjusted according to the equity financing situation, such as the implementation of options within the validity of equity financing will increase the demand for net profit growth, this is the first share of listed companies have launched an equity incentive plan is still in the initial. If Vanke on April 1, 2011 for the grant of options, then 2010 years as the base year, such as the completion of a equity financing in 2011, the net amount of fund-raising for the 2010 20% of net assets, then the second line of rights in the right conditions,　　In 2012, the net profit growth rate for 2010 was raised from no less than 45% to no less than 65%, and in the third right term, the net profit growth rate for 2013 compared to 2010 was raised from no less than 75% to no less than 95%. However, the country's two-time intensive regulation of real estate policies, especially to curb the demand for investment in housing, the intensity of the largest unprecedented in history. Vanke's management team can have enough ability to cope with market adjustment, whether the option incentive scheme can be successfully advanced.