Sany uses stock incentive plan to distribute welfare for employees within the year

Following the introduction of employee stock ownership plans in March this year, Sany launched another 377 million stock incentive plan to distribute benefits to employees. In the construction machinery industry performance generally downward situation, Sany's generosity is particularly interesting.

In the evening of October 18th, Sany issued a stock option and restricted stock incentive plan draft, the company intends to grant the object to grant a total of 377 million 226 thousand and 400 shares, involving shares accounted for about 4.96% of the total share capital of the company. Among them, 317 million 226 thousand and 400 were awarded for the first time, accounting for 4.17% of the total capital of the company; reserved 60 million copies, accounting for 0.79% of the total share capital of the company.

Among them, the company intends to grant the object for the first time to grant 267 million 631 thousand and 600 stock options, reserve 48 million stock options, the first part of the stock options for the exercise price of 5.64 yuan each. In addition, the company intends to grant the object for the first time to grant 49 million 594 thousand and 800 restricted shares, reserve 12 million shares of restricted shares, the first part of the restricted shares granted price of 2.82 yuan per share.

The total number of incentive objects granted by the company for the first time is 1684, including company directors, senior managers, middle managers and core technical personnel who are employed by the company (including subsidiaries and holding companies).

In terms of performance appraisal objectives, the annual performance appraisal objectives of the company for the first time were: the company's net profit in 2017, 2018 and 2019 increased by 10% or more, respectively, compared with the previous year. For the first time, the annual performance evaluation target of restricted shares is: the company's net profit in 2017 and 2018 increased by 10% or more, respectively, compared with the previous year.

This incentive is mainly aimed at the core management. And at the beginning of this year, Sany also launched a shareholding plan for all employees. The plan is divided into two stages, the total amount of funds raised is 800 million yuan, and the stock is purchased in the two level market. The first phase of the shareholding plan equal subscription of secondary shares, 2 times leverage amplification gains. At the same time, the controlling shareholder of the company group 31 guarantee of principal and income information management plan priority share, the share of secondary security principal, by the 31 group reveal all the details to ensure that employees' income. Based on the confidence of the company's development, the first phase of employee stock ownership plan was welcomed by the company's employees, raised a total of 703 million yuan.

State Securities Research Report Analysis, the use of equity incentive method can achieve management, staff and market value management of the integration of the three interests, is conducive to play the management and staff enthusiasm, to create greater benefits for enterprises. At the same time, because of the same price of stock price and equity incentive in the two level market, from the game point of view, the short-term will have a positive feedback effect on the stock price, and the stock price is expected to rebound upward.

In addition, according to the sales data of September national Excavator Construction Machinery Industry Association announced, Sany excavator sales in the domestic market and export are ranked first. According to the market data show that the first three quarters of 31 also sit tight in the top spot in the domestic sales of excavators, and to take a big lead second.

Analysts believe that, after a long period of decline, the construction machinery industry has completed the survival of the fittest in the industry, the current industry risk has declined significantly, customers and manufacturers have returned to rational development. After the cold winter, the industry bottomed out the road has been opened, turning point has emerged.