The Monarch Capital Management Group Job-hopping

Reporter Song gully Beijing coverage

Changes in personnel management brokerage peak ushered in.

21st Century Business Herald reporter from the close Qilu Securities Department was informed that the Qilu securities and asset management business will be from Guotai Junan Zhang Biao, who took over the team.

According to a person close to Qilu Securities disclosed that Zhang Biao and others, apart from taking over the management of pipe companies, Zhang Biao may obtain a vice-rank of the company and the core team will also obtain a certain equity incentive in the establishment of the asset management subsidiary.

Since this year, a number of brokerage companies have experienced personnel changes.

As early as the end of this year, Everbright Securities (601788.SH) former general manager Wu Liang's departure has set off a prelude to changes in the management of personnel brokerages, and after that, the head of Industrial Capital Management Xu Jingde also left private placement Sunshine.

In fact, asset management business personnel turmoil has an impact on business and product stability.

"The asset management business is characterized by its continuity. Frequent personnel adjustments not only make the business of the Company less continuous, it is not a good thing for the asset trustors," a Shanghai-based asset manager said.

Insiders believe that the frequent "move" of asset management professionals and the current lack of long-term incentive mechanism for asset management companies are not unrelated. On the one hand, there are still institutional obstacles to the direct equity incentive system of the securities firms, and some of the product-side incentive mechanisms also have some compliance disputes.

However, it is worth mentioning that the indirect equity incentive mechanism has been piloting fetal asset management business in some banks, and the equity incentive mechanism of "class partners" will also become an option in the future when the management mechanism of capital is restricted .

Job vacancy tide management mechanism

Since the beginning of this year, the personnel turmoil in the management of securities companies has undoubtedly put a test on the stability of the capital management business of securities companies.

"Such a large departure is easily posed by the team's asymmetry in terms of contribution, risk and incentive mechanisms." The aforementioned executives said that "asset management is not a low-income entity, but it still lacks the" long-term incentive. "

It is worth noting that Zhang Biao, the former head of Guotai Junan Asset Management, which took over Qilu Asset Management, will probably obtain the corresponding long-term incentive in the job-hopping.

According to a person close to Qilu Securities disclosed that Zhang Biao himself may be able to obtain a company vice president level positions, and the core team will also be funded in the establishment of subsidiaries to obtain a certain equity incentive.

However, similar incentives are still rare in the current brokerage industry.

"At present, the stock broker's equity incentive has just started, in fact, some funds have begun to do equity incentive." Fu Ping, a Beijing-based brokerage manager (a pseudonym), said frankly.

Public funds such as Celestica, CEIBS, Qianhai Kaiyuan and other fund companies have announced the implementation of equity incentive mechanism, while the broker's equity incentive mechanism in the implementation level has always been no major move.

However, the institutional incentive to broker equity incentives is not without trace.

Although the Securities and Futures Commission released the Regulation on Equity Incentive and Constraint Mechanism of Securities Companies (Draft for Comment) in March last year, conjectures on the establishment of equity incentive mechanism by brokerages have appeared constantly, but the official version of the administrative provisions has lagged behind Issued.

"At present, there are still some legal and institutional conflicts in the incentive mechanism of securities firms, such as individual direct shareholdings." A senior Southwest securities firm pointed out that "only the Securities Law of the People's Republic of China and the Securities Regulatory Commission under the State Council have been amended. Incentives are expected to be further carried out. "

In fact, some companies have also tried to launch "alternative incentives" in the form of after-sales product subscriptions. However, such models have been widely debated because of their lack of transparency and their suspected transfer of profits.

"Some brokerages allow employees to subscribe to the inferior share of some innovative structured asset management products themselves, take the lead risk and at the same time get excess residual income, which is generally found in the trust projects." Fu Ping pointed out that " However, this model is relatively gray, there are also some controversial compliance, and some products may even exist because of the risks and benefits of transfer of potential delivery, last year Hongyuan Securities accident (see the newspaper on September 13, 2013 13 Version of the report), the brokerage to do so less.

"Partner" system of fetal movement

In order to circumvent the above policy restrictions such as individual direct shareholding, among the many incentive mechanisms, the equity incentive of the class partners is considered as one of the more suitable ways to maintain the stability of the asset management business.

"Asset management is an industry that is highly dependent on human capital," said Chen Guangming, general manager of Orient Securities. "At this stage, the partner system represented by the Employee Stock Ownership Scheme is an effective long-term incentive and restraint mechanism that is more suitable for the development of the asset management industry."

According to the person in charge of Orient Securities' asset management business, the company of Dongzheng Capital has made some preliminary designs in establishing a long-term incentive mechanism.

"If it is proposed to meet the requirements of senior management and core employees, to private placement of shares to carry out employee stock ownership plan, employee incentive stock to be set up by the limited partnership as a platform jointly held." Chen Guangming said.

Compared with traditional incentives, equity incentives will also make it more manageable by setting constraints, such as setting the lock-up period, the minimum floor of the shareholding, and exit from the company.

"First of all equity incentive period of a certain period of lock-up, in principle, the lock period can not be withdrawn, but also the minimum lock-up requirements, so that the company's operating risk and employee interests directly linked to." Chen Guangming pointed out that "employees after the ownership must be all Exit, and need to go through a certain period of risk assessment, the corresponding business risk commitment.

However, unlike the Internet companies, the equity incentive effect of the securities and investment company is reflected in the actual rewards and rewards. The majority of cash dividends derived from the profits generated from the company will be set aside instead of the premium after the listing.

"Incentive shareholding is an employee's shareholding and can not be sold to outside shareholders and it is very difficult to obtain a capital premium in the short term." Chen Guangming said frankly that "the return is mainly realized through the cash dividend of corporate profits."

In the opinion of Chen Guangming, the establishment of such a partnership system will have a positive effect on the health and stability of the asset management industry.

"This system arrangement effectively balances the interests of the staff and the interests of the principal, the interests of the company and the interests of the shareholders. It will also help to protect the interests of the principal and improve corporate governance while helping to reduce the operating costs of the company," said Chen Guangming.

However, some insiders also questioned the mode of partnership equity incentive.

"The same line of business, some people scale, performance well, some people do the same, but even if individual performance is excellent, because the company's overall business decline, then individuals can not benefit from the equity incentive, which will be Affect the enthusiasm. "A central bank brokerage said that" similar incentives should be more specific to each product, rather than the generalization of the entire business line up. "