Since 2007, dozens of companies offering equity incentive plan. However, this year the stock market dropped by breaking the executives of the "dream", statistics show that more than 70% of the shares of the stock price has been lower than the original incentive scheme in the exercise price. At the same time, this year may already have 18 company announcements to stop implementing equity incentive plan.
40 stocks fell exercise price by more than 50 per cent
As of now, there are 120 companies launched equity incentive plan. From the stimulation the subject-matter, this stage only equities, options and stock appreciation rights option three, as the subject-matter of the accounting for the mainstream, a total of 92 adopting option to motivate, 77%; the remaining 28 adopting stock to motivate, 23%; there's Valin steel, Guangzhou ggec, Yun e three also uses a stock appreciation rights subject to incentive.
According to wind statistics, in 120 only equity incentive stock, 7% of the stock price has been lower than the original incentive scheme in the exercise price. In particular with a view to encouraging the subject matter that would be 40 stocks stock price is below the exercise price by 50%, of which: guangyu Group stock price $ 3.14 exercise price of only 25%, currently stopped implementing equity incentive plan; Shenzhen Hui cheng's current stock price is only $ 6.97 exercise price of 29%.
It is worth noting that, in addition to giving stock appreciation rights and encouragement by listed companies to extract A unit of the Fund for the purchase of circulation gift restricted stock in two ways, other ways to get inspired subject matter (such as the right incentive object option line, private placement shares or shareholders to transfer stock to motivate object) has a clear exercise price, exercise also need incentive pay of objects hard cash. But judging from the current market price level after the crash, the latter in the current market State, stock prices are already below the exercise price, exercise incentive object is directly in the secondary market to buy stocks.
Executives in equity incentive quilt cover
In 120 home equity incentive plan, the company has already implemented 30, of which 16 implemented subject matter was stock, 14 family option. In this 30 companies, with a view to the right of the subject-matter of the way of motivation, because the options property, making a stronger sense of inspiring objects, even if the stock price falls, the most inspiring objects cannot receive excess profits, but also because of the incentive to become a burden. But for a stock to the subject matter in the way of motivation, if the stock does not begin with the special low price, has certain incentive object still risk. Incentive programmes have been implemented in the 16 to stock to the subject-matter of the company, currently has already occurred, the first (CSG A) incentive object instead of motivated equity quilt cover.
CSG A 2008 July 14 to the prevailing market price of ordinary level increased to $ 8.73 incentive object, but was born too late, as the market downturn, only after just a 2-month period, its share price decline by up to 50% or more, has fallen below the exercise price at that time, the current stock price is only $ 8.51; that is inspiring book on the current object is not only not motivated, in fact these incentive assets has become a burden.
Similarly, Valin steel in August 16 through the stimulus funds to buy public companies extracting A share of stock in circulation is 7.204 element, because the purchase of capital stock of which half are inspiring objects themselves pay the cost of the incentive object for the current share price of $ 3.6, in 1 months has reached $ 4.77, close to the cost of incentive object, the object is now believed to stimulate ceased to be just right for a good line.
18 companies programme was forced to halt
At the end of 2007, due to the optimistic expectations of the market, the company introduced a stock will strongly, from December 2007 to 2008, 71 companies introduced incentive programmes, representing the company of 59 per cent of the total. But as the market continues to decline, the stock of risk is reflected in the last two months only 3 companies propose incentive programmes. At the same time, this year may already have 18 company announcements to stop implementation of incentive programmes.
September 18, huashen group notice to stop implementation of incentive programmes, programme exercise price 12.88 Yuan, and the latest stock price of only $ 4.2, incentive programmes already from pie into traps that can only be forced to stop.
Even with options for incentive company, because the exercise price and the price gap is too big, you will be forced to stop implementation, such as long electric technology, woer heat-shrinkable material, gemdale group, guangyu group company scenario warrants after exercise price is the price of 2.7-3.5 times between the fundamental significance of lost motivation, so these companies have later in June announced the implementation of incentive programmes ceased.
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