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ions and dividends). But as for the overseaslisted SOEs, the maximum incentive is 40 percent of the target salary. The trial plan also fixes the volume of incentive stock options. The trial plan states that the volume of incentive stock options should be fixed in accordance with the scale of the listed pany and the number of incentive objectives. The number of share allocated may not exceed 10 percent of the pany’s total share capital and no less than percent. In fact, Beijing Review was informed by the CSRC that some 20 listed SOEs also began exploring stock option incentive schemes in the first half of this year. But none of them received approval from the CSRC because their schemes revealed sharp contrast with the trial plan in terms of the scale of incentive stock options offered. Resultsoriented Under the trial plan, better performance is a must to obtain stock privileges. The number of incentive stock options that senior executives in listed SOEs can get depends on their annual performance. If they cannot fulfill the targeted objective s , the listed pany may have the right to take back the incentive the stock options or purchase them back at the price at which they we re sold to the executives . Zhu Yongmin noted that the stock option incentive plan is not invariable. The directors of listed panies, senior executives, and core technological and management personnel may not get the target stock options if they fail to achieve a satisfactory performance. No freebies For sure, state stocks won’t be given to executives for free, under the trial plan. “The state stocks have prices,” Zheng said. “If they we re paid to senior executives for free in the name of incentive stocks, it is equal to a loss of state assets. To elaborate, the incentive stocks should be the increment of stocks that are earned by the executives for listed SOEs after the implementation of the trial plan, and should not be previous stock inventory. In short, the past is past. Only future stock increases can be used as incentive stocks.” Further, “The incentive stocks should not be paid only by the SASAC, which