Share
Issuance Scheme （员工發股计划）
1. Employee
Share Option, ESOS (雇员认股计划)
Employees
allow to buy company share with discounted of 10% max. of market price. But
discounted price cannot be over than 10% of 5 days weighted average market
price.
2. Share
Grant Scheme (雇员免费送股)
Free
share given to employee
Any share issuance scheme proposal must be approved by shareholder in
general meeting. Validity period of each proposal share issuance scheme normally
between 5 to 10 years. After the validity period new proposal is required for the
resolution. New issuance share quantity cannot over the existing share quantity
of 30%. ESOS committee established once approval is granted by shareholder and ESOS committee will draft the share quantity
allocation, price and vesting period (allow to sell period).
Shareholder benefits may affect;
1. According
to financial statement requirement regardless ESOS or SGS must record as an expenses and its will impact the bookkeeping profit. Even it has not affect cash flow and dividend
distribution capability but market
confidence level drop may happen
as affect profit.
2. If
company allocate huge quantity to a
single employee and the ESOS committee does not set vesting period
properly. Cash out may happen anytime and will cause share price drop pressure.
3. Independent Director may include
in SIS program to indeed their contribution to the company. Independent
director play as supervise role in company once involving in ESOS program and have company share become not independent. Independent
director mean a director does not have a single share of company.
4. New
share issue, company share quantity will
increase consequently EPS will be
dilute and affect the company share price performance.
