Be wary of equity incentive changing the condition of conveying the benefits too wide give the executive a red envelope

The report also yesterday launched the next three years to double the equity incentive scheme, but Tiger medicine and the market reaction of Connaught is not the same: the former trading, the eventual rise of 6.19%, the latter but fell 1.76%, a big run lost yesterday Gem index.　　The industry believes that although equity incentives often have a positive effect on the share price, but the right to do so is too loose, is tantamount to giving corporate executives red envelopes, of course, investors will be "vote with their feet." In contrast to two of the plans, Tiger Medicine's line of demand is: 2013-2015 income growth rate is not less than 26%,60%,104%, net profit growth rate is not less than 30%,70.30%,124.80%.　　It is: 2013-2015 net profit growth rate is not less than 60%, 80%, 100%, 2013-2015 net assets yield is not less than 4.5%, 5% and 5.5% respectively. The net profit indicator, though equally demanding, will be doubled from 2012 to 2015 years, but if the process is completed, it is clear that Tiger medicine's profit growth is more stable and that it is "before and after". Regardless of amortization costs, two companies are converted to annual growth rates of 30%, 31%, 32% and 60%, 12.5% and 11% respectively. From the previous results, in 2010-2012 and the first half of this year, Tiger Medicine's net profit growth rate was more than 40%, while the Connaught is the rise and fall, the growth rate of 41.47%, 18%,-28.42% and 51.96% respectively.　　Obviously, the former has a higher growth certainty, while the latter by the industry's volatility, performance fluctuations. "The company launched the equity incentive plan, although the performance requirements are slightly lower than the previous market expectations, but for the next three years of development to provide protection." "Hongyuan Securities pharmaceutical industry analyst Wei Wenqing said Tiger medicine in the CRO industry is different from other pharmaceutical industries, employees are for the company to create value for the international pharmaceutical enterprises to provide outsourcing services, at this time large-scale, extensive promotion of equity incentive, is the company in another way to compensate employees income,　　Help to improve the company's performance. By contrast, its plans have been questioned by investors. "The low performance base last year, the price of products soared this year, the growth rate set too low, not aggressive, purely for the company's senior executives and the backbone of a little advantage, did not consider the interests of the majority of shareholders." "There are investors in the stock right."　　In addition, the additional restrictive stock incentive scheme offered by the firm, with the same terms as the right of option, was awarded at a price of only 6.22 yuan, substantially below the latest market price of 11.17 yuan, which was also widely spat by investors. "Overall, the equity incentive will have a positive impact on the share price, but some companies are too loose in the right conditions, so that investors lack of confidence in the development of corporate performance." At the same time, too low the right to the threshold also exists the interests of transmission suspicion. "The equity incentive is also known as the" golden handcuffs "by the market, said the Securities analyst Song Leopard,So that the incentive to work harder during the incentive period, but if the set of the right to be too low, it is tantamount to the company's executives to send red envelopes, which is very bad for investors in the two-tier market. Reporter further statistics found that this year, a total of 136 companies issued equity incentive plans, has reached the previous release of the largest number of years-2011 annual level. Of these companies, 90 companies have seen their 2012-year performance decline compared with the previous year. A financial analyst explained to reporters that many companies choose in the year of poor performance, as the base year, can reduce the difficulty of the right to do. Reporter Ailing Yu