Oriental Garden: 129.98 RMB to strengthen incentive effectiveness

With the improvement of the relevant equity incentive system, some listed companies launched the Equity incentive scheme has made great progress in the effectiveness of incentives, while the actual control of private enterprises for the long-term development needs of enterprises, its leading the introduction of a number of equity incentive schemes are often more substantive impetus to the development prospects of enterprises, At present, one of the highest shares of the stock market Oriental garden (002310.　　SZ) is one of the typical examples.　　The equity incentive scheme of Oriental garden in the beginning, the most market concern is to count its right price, up to 129.98 yuan of the price of the right to make a lot of investors feel shocked, after all, the stock price more than hundred units, in the A-share market is still a rare species, and equity incentive to the right price more than hundred yuan is unique. According to the plan of the Oriental Garden's Equity incentive scheme, prepare to grant 2 million stock options, each share option has the right to purchase 1 shares of Oriental Garden shares at a predetermined line price of 129.98 yuan in the planned line of entitlement period, accounting for 2.66% of the total equity at the time of the incentive plan signing.　　The scheme is valid for 6 years. Because of the private nature of the company, as early as the IPO, the company's deputy general manager level of senior management has already held a considerable share of the company.　　Therefore, the company's equity incentive plan is mainly facing the middle managers, the total number of 75 people, this will undoubtedly better the interests of the company's middle managers and the actual control of the company, the interests of the executive layer bundled together. At the same time, the effectiveness of the Oriental Garden Equity Incentive scheme is also commendable. In addition to satisfying the general conditions of granting, the incentive object has a higher right to be qualified.　　If the programme stipulates that in the year 2010-2014 5 fiscal years, the annual performance appraisal parallel right, each fiscal year assessment, and the period of the annual net profit growth rate of 2009, respectively, 80%, 140%, 225%, 340%, 500%. According to the above net profit appraisal target condition, the company 2010-2014 year net profit's chain growth rate is about 80%, 33%, 35%, 35%, 36% respectively. For any A-share listed companies, for 5 consecutive years more than 30% of the composite growth rate, is undoubtedly a worthy of investment in high-growth enterprises. And this is deducted from the relevant equity incentive costs after the net profit assessment, coupled with the number of equity incentives in 5 years of distribution, which completely avoided the appearance of shares like Yili (600887.　　SH) As a result of a year's equity incentive cost is too high to lead to loss of the situation, better to the shareholders and the interests of the company insiders organically combined. Although the Oriental Garden's equity incentive scheme is still not perfect, but for such a can be the actual control of enterprises, middle and senior managers and the interests of the two-tier market investors, the basic combination of incentive effectiveness and relatively strong program, it is worth many enterprises for reference.