Sinochem International board approved equity incentive plan at its latest meeting in December 2019. Under this plan, 59.16 million restricted shares will be granted to 262 executives and employees, accounting for 2.18% of the company's total share capital. This is an important measure of Sinochem International to reform its incentive mechanism and the first breakthrough in equity incentives during the company's 20 years of listing.
The equity incentive plan is expected to align employee and company interests. It will motivate core employees to help the company join the 100 billion RMB market cap club in the future, according to Liu Hongsheng, general manager of Sinochem International.
A total of 262 company directors, executives, and key employees will share these incentive shares, approximately 1% of the company's employees. These restricted stocks will be locked for two years after issuance, and will be released if company and personal performance meets the evaluation standards.
To encourage employee innovation and to promote business development and strategy implementation, Sinochem International has deepened its reforms over the past two years, with incentive mechanism being a key component. The reform started with short-term, cash-based incentives, and has extended to mid- and long-term equity incentives. Recently, Sinochem has built a diverse incentive system with various incentive measures for different groups, including growth profit sharing (GPS), project incentives, risk mortgages, equity simulations, dividends, technology investments, and so on.