|
State firm executives to get stock options from March 1
By Zheng Lifei (China Daily)
Updated: 2006-02-23 13:52
"SASAC is likely to introduce stock option plans in domestically-listed SOEs
this year , probably in the latter half of this year," Wang said.
The introduction of the management stock option plan, which has been in
discussion for many years, is the latest move in the government's efforts to
reform SOEs.
Last month, SASAC relaxed a ban on management buyouts in large-scale SOEs,
allowing executives in those companies to purchase limited shares of the company
in which they work.
The government's decision to introduce a stock option plan in
overseas-listed SOEs is just the latest move to reform the SOEs and also a sign
that SOE reform is accelerating.
It comes at the heels of a relaxation last month of a
nine-month-old ban on management buyouts (MBO) in large-scale SOEs.
Following then widespread public concern that MBO were causing
State asset losses, authorities issued a rule last April freezing the MBO in
large-scale SOEs.
State-owned Assets Supervision and Administration Commission
(SASAC), the country's State company watchdog, relaxed the ban on January 22,
allowing limited purchases of shares by SOE executives.
In a bid to alleviate public worries that
some SOE managers may make use of the new regulation to their own gain and thus
result in losses of state assets, SASAC issued detailed guidelines on how those
shares buyout activities could be carried out. The new rule, for example,
requires that executives should provide certificates that can prove the validity
of their capital sources for their share purchase.
Decision
targets reform of state-owned enterprises
The
government's decision to introduce a stock option plan in overseas-listed SOEs is
just the latest move to reform the SOEs and also a
sign that SOE reform is accelerating.
It comes at the heels of a relaxation last month of a nine-month-old ban on
management buyouts (MBO) in large-scale SOEs.
Following then widespread public concern that MBO were causing State asset
losses, authorities issued a rule last April freezing the MBO in large-scale
SOEs.
State-owned Assets Supervision and Administration Commission (SASAC), the
country's State company watchdog, relaxed the ban on January 22, allowing
limited purchases of shares by SOE executives.
In a bid to alleviate public worries that some SOE managers may make use of
the new regulation to their own gain and thus result in losses of state assets,
SASAC issued detailed guidelines on how those shares buyout activities could be
carried out. The new rule, for example, requires that executives should provide
certificates that can prove the validity of their capital sources for their
share purchase.
|
