1、 外文翻译 学 院： 商 学院 专 业： 会计系 学生姓名 ： 学 号： 0711206342 指导教师 ： 2011 年 6 月 SOE Execs: Get Ready For Stock Incentives TAN WEI Stock option incentive plan will soon be available to state-owned enterprise executives, but will it lead to greater prosperity or new problems? A trailblazing new scheme to infuse sta
2、te-owned enterprises (SOEs) with incentive stock options is under way. Its a plan that may bolster company performance, but its not without risks. On August 15, Li Rongrong, Minister of the State-owned Assets Supervision and Administration Commission (SASAC), disclosed that after careful study, a st
3、ock option incentive trial plan will be carried out in the listed SOEs. According to the trial plan, about 102 A-share listed SOEs are expected to be the trial companies. The short list of some of those expecting to participate includes: China Unicom, Citic Group, Kweichow Moutai, China Merchants Ba
4、nk and Beijing Financial Street Holding Co. Stock option incentive plan is designed to entice executives to work hard for the long - term development of their companies. As stocks rise based on company performance, they too gain through this profits haring arrangement. This kind of incentive plan is
5、 popular in foreign countries, especially in the United States, where stock options can account for as high as 70 percent of a CEOs income. Further, many economists believe the stock option incentive plan optimizes corporate governance structure, improve management efficiency and enhance corporate c
6、ompetitiveness. On the other hand, after the Measure s on the Administration of Stock Incentive Plans of Listed Companies was issued early this ye a r, some of the companies turned out to have misused the incentive stock options. The result was insider dealings, performance manipulation as well as a
7、 manipulation of the company stock price. “Although the stock option incentive scheme is a frequently used tool to encourage top management, it could also be a double - edged sword especially in an immature market economy,” Li said. The SASAC is therefore taking a cautious approach, placing explicit
8、 requirements on corporate governance, the target and extent of the incentive measures, Li added. Li stated that the overseas-listed SOEs would be the first few companies that will implement the mechanism because of their sound management structure and law-abiding nature. Then the domestic listed SO
9、Es will have the chance to embrace incentive stock options, which would be promoted if the trial results were good. Executive face-lift As for more than 900 listed SOEs, the personnel structure of the boards of directors will pro b ably face substantial change. Thats because the plan states that if
10、the s t o ck option incentive mechanism is going to be implemented in listed SOEs, external directors should account for half of the board of directors. The trial plan introduced the concept of external directors for the first time. The external director should be legally recommended by directors of
11、 listed SOEs, and should not be working in the listed SOEs or in a holding company, said the plan. However, currently, most of boards of directors of listed SOEs are not in compliance with the requirement. They have to readjust the structure of board of directors to fit in with the new mechanism. “F
12、or most of the SOEs which are listed in the A-share market, their boards of directors are made up of non-external directors and independent directors, which means that apart from independent directors, members of board of directors are all working for the listed company or for the large shareholder,
13、” said Zhu Yongmin, an economist with the Central University of Finance and Economics. “If the stock option incentive mechanism is to be carried out in those companies, a large-scale restructuring of board of directors is unavoidable and external directors must be introduced into the board.” China S
14、ecurities Regulatory Commission (CSRC) stipulates that an independent director is one who doesnt hold another office beyond his job as a director, and has no such relations with major share holder that would interfere with the exercise of independent and objective judgment. “Currently, the independe
15、nt directors of listed companies can be categorized as external directors,” Zhu said. “However, the definition of external director is much broader than independent director. Those who work for a company which has business ties with a listed company, though they do not meet the requirements of being an independent director, but can be considered an external director.” Additionally, the trial plan also stipulates that the salary committee of listed SOEs
