SASAC imposes strict limitations on equity incentive: not exceed 40% of salary.

<P> Performance targets set should be forward-looking and challenging part of the equity incentive shall not exceed the actual revenue line of the right to establish a social mechanism for monitoring and assessment experts </ P> <P> reporter learned yesterday, the Commission for listed companies .equity incentive issued two memorandum, SASAC will strike out, strict supervision part of the state holding listed companies in the equity incentive program design and actual operation of the implementation of the conditions that exist in too broad, lax performance evaluation, and expected returns .out of control and other issues. .</ P> <P> before corporate allocation of Bureau of SASAC developed "state-controlled listed companies on the implementation of equity incentive regulate issues related to supplementary notice" (draft), and in July 10 to the community for advice. .</ P> <P> enterprise distribution Bureau of SASAC, said the draft is based on prudent principles of strict formulation, both executives of listed companies considered to mobilize the enthusiasm, but also consider the implementation of equity incentive normative science .to strengthen state-controlled listed companies on the equity incentive plan oversight, prompting state-controlled listed companies orderly implementation of equity incentive pilot. .</ P> <P> According to the supplemental notice, the listed company equity incentive, performance goal setting should be forward-looking and challenging options granted incentive object target level of performance when the company nearly three years no less than the average level of performance and .the level of performance with the industry average. .Incentive to exercise the right to object when the target level of performance to the level of performance at the time of the grant on the basis of increased. .</ P> <P> control problem for the expected benefits to supplement the notification requirement, the exercise period for stock prices too high, resulting in the actual exercise of stock options plan approved for benefits beyond the level of expected returns of listed companies, the actual return to .reasonable level of control. .Real income than equity incentive proportions of (domestic equity incentive incentive objects listed companies account for stock options granted to return the salary the highest proportion of the overall level of 40%), yet the exercise of stock options not exercised. .For restricted stock incentive, added notification requirement, the expected earnings growth rate shall not exceed the growth rate of performance indicators. .</ P> <P> equity incentive programs in addition to the prior specification, the SASAC will also matter experts to establish social monitoring and assessment mechanism. .Supplementary notification requirement for listed companies will be adopted by the Board of Directors considered the draft equity incentive plan shall be announced on the website of SASAC, accept public supervision and evaluation, while the SAC will organize experts to review the program. .Public supervision, the evaluation comments and expert opinions, as regulators review state-owned assets an important basis for the equity incentive plan. .</ P>.