Notice of the State-Owned Assets Supervision and Administration Commission of the State Council and the Ministry of Finance on Regulating the Implementation of Equity Incentive Plans by State Holding Listed Companies

国务院国有资产监督管理委员会、财政部关于规范国有控股上市公司实施股权激励制度有关问题的通知

Promulgating Institution: State-owned Assets Supervision and Administration Commission of the State Council; Ministry of Finance

Document Number: Guo Zi Fa Fen Pei [2008] No. 171

Promulgating Date: 10/21/2008

Effective Date: 10/21/2008

颁布机关: 国务院国有资产监督管理委员会; 财政部

文      号: 国资发分配[2008]171号

颁布时间: 10/21/2008

实施时间: 10/21/2008

To each commission of the State-owned assets administration and each public finance department (bureau) of each province, autonomous region, municipality established directly under the Central Government, and city specifically designated in the State plan and Xinjiang Production and Construction Corps, and each central enterprise:

After the issuance of the "Notice on Printing and Distributing the Trial Measures for Implementing Equity Incentive Plans by State Holding Listed Companies (Overseas)"(Guo Zi Fa Fen Pei No. 8 [2006]) and the "Notice on Printing and Distributing the Trial Measures for Implementing Equity Incentive Plans by State Holding Listed Companies (Domestic)" (Guo Zi Fa Fen Pei No. 175 [2006]) by the State-Owned Assets Supervision and Administration Commission of the State Council and the Ministry of Finance, both domestic and overseas State Holding Listed Companies (hereinafter referred to as "listed companies") try to implement Equity Incentive Plans actively. Due to the undeveloped external market and internal operating mechanism of listed companies, equity incentive plans still stand on the pilot phase of their implementation project. For the purpose of effectively regulating the implementation of equity incentive plans on an ongoing basis, the relevant issues are hereby notified as follows:

    各省、自治区、直辖市及计划单列市和新疆生产建设兵团国资委、财政厅(局),各中央企业:

    国资委、财政部《关于印发<国有控股上市公司(境外)实施股权激励试行办法>的通知》(国资发分配〔2006〕8号)和《关于印发<国有控股上市公司(境内)实施股权激励试行办法>的通知》(国资发分配〔2006〕175号)印发后,境内、外国有控股上市公司(以下简称上市公司)积极探索试行股权激励制度。由于上市公司外部市场环境和内部运行机制尚不健全,公司治理结构有待完善,股权激励制度尚处于试点阶段,为进一步规范实施股权激励,现就有关问题通知如下:

1. Restricting the conditions for implementing equity incentive plans and perfecting the structure of corporate governance 

State-owned controlling shareholders of the listed companies shall fulfil their obligations as investors and establish a normative corporation administrative structure in accordance with the requirements of documents No. 8 [2006] and No. 175 [2006] issued by the State-Owned Assets Supervision and Administration Commission. Where the outside directors (including independent directors) account for half or more than half of the total composition of the board of directors and the remuneration committee is composed of outside directors, the listed company shall further optimize the structure of the board of directors, establish a system of appointing and replacing directors by approval at shareholders' meetings, and select directors based on their professional skills and business repute, reduce the number of directors who are occupy principal positions such as senior managers, or other staff of state-owned controlling shareholders, and effect an increase in the number of independent directors appointed by representatives of investors and an increase in positions assumed by people other than controlling shareholders. Directors shall be urged to develop their capability and encouraged to obey the code of conduct to ensure that the board of directors fulfils its functions of recruiting, apprizing and motivating senior managers and assumes the role of the representative of the interests of all shareholders and the centre of decision making.

       一、严格股权激励的实施条件,加快完善公司法人治理结构

    上市公司国有控股股东必须切实履行出资人职责,并按照国资发分配〔2006〕8号、国资发分配〔2006〕175号文件的要求,建立规范的法人治理结构。上市公司在达到外部董事(包括独立董事)占董事会成员一半以上、薪酬委员会全部由外部董事组成的要求之后,要进一步优化董事会的结构,健全通过股东大会选举和更换董事的制度,按专业化、职业化、市场化的原则确定董事会成员人选,逐步减少国有控股股东的负责人、高级管理人员及其他人员担任上市公司董事的数量,增加董事会中由国有资产出资人代表提名的、由公司控股股东以外人员任职的外部董事或独立董事数量,督促董事提高履职能力,恪守职业操守,使董事会真正成为各类股东利益的代表和重大决策的主体,董事会选聘、考核、激励高级管理人员的职能必须到位。

2. Perfecting the performance evaluation system of equity incentive plans and setting up scientific performance indices  

(1) Listed companies which implement equity incentive plans shall establish a developed performance evaluation system and specific measures.  The performance indices shall include a comprehensive index reflecting shareholders' dividend and the value of corporation, like Rate of Return on Common Stockholders' Equity (ROE), Economic Value Added (EVA) and Earning Per Share (EPS); growth index reflecting the profitability and market value of the corporation, such as the growth rate of net profit, growth rate in the revenue of the primary business and in the corporation's market value; and index reflecting the income of corporation, such as the proportion of the profit from the primary business among the total profit, cash flow index etc. In principle, the listed company shall choose at least one of the above three indices. The calculation of the performance evaluation index shall comply with the related requirements of the current accounting standards. 

(2) To implement the equity incentive plans, the listed company shall establish performance objectives for the grant and exercise of rights such as the exercise of stock options and stock appreciation right, or the unlocking of restrictive stocks. The performance objectives shall be proactive and challenging, and the completion of the said performance objectives shall be considered as a mandatory condition towards implementing equity incentive plans.  

(a) The level of performance objectives for granting equity to eligible participants by listed companies shall not be less than the average performance level(or 50 percentile of benchmarking enterprises)of the company, or of the same industry, (or selected domestic or overseas benchmarking enterprises in the same industry, the industry shall be determined according to the classification standard set up by securities regulatory authorities). 

(b) The level of performance objectives when the eligible participants exercise rights shall be determined upon consideration of the character of the industry of the listed company and its development strategy, and shall be higher than that of granting, but shall not be less than the average level of the same industry (or 75 percentile of benchmarking enterprises). Otherwise, that right shall not be exercised. 

(3) Listed companies shall perfect the performance evaluation system for participants of the equity incentive plan and use the performance evaluation result as a reference for the grant and exercise of equities. Specifically, the ratio of exercised equity shall be determined in accordance with the performance evaluation result. 

(4) Technology listed companies can decide their performance indices for granting and exercising equities according to the industry characters and their growth rules.   

(5) With respect to industries controlled by state-owned economy, and concerning national economy and security, as well as industries operated by franchises, the performance indices shall be determined by way of setting up operating degree of difficulty and avoiding the impact of policies like price adjustment or macro control on the performance thereof.

       二、完善股权激励业绩考核体系,科学设置业绩指标和水平

    (一)上市公司实施股权激励,应建立完善的业绩考核体系和考核办法。业绩考核指标应包含反映股东回报和公司价值创造等综合性指标,如净资产收益率(ROE)、经济增加值(EVA)、每股收益等;反映公司赢利能力及市场价值等成长性指标,如净利润增长率、主营业务收入增长率、公司总市值增长率等;反映企业收益质量的指标,如主营业务利润占利润总额比重、现金营运指数等。上述三类业绩考核指标原则上至少各选一个。相关业绩考核指标的计算应符合现行会计准则等相关要求。

    (二)上市公司实施股权激励,其授予和行使(指股票期权和股票增值权的行权或限制性股票的解锁,下同)环节均应设置应达到的业绩目标,业绩目标的设定应具有前瞻性和挑战性,并切实以业绩考核指标完成情况作为股权激励实施的条件。

    1.上市公司授予激励对象股权时的业绩目标水平,应不低于公司近3年平均业绩水平及同行业(或选取的同行业境内、外对标企业,行业参照证券监管部门的行业分类标准确定,下同)平均业绩(或对标企业50分位值)水平。

    2.上市公司激励对象行使权利时的业绩目标水平,应结合上市公司所处行业特点和自身战略发展定位,在授予时业绩水平的基础上有所提高,并不得低于公司同行业平均业绩(或对标企业75分位值)水平。凡低于同行业平均业绩(或对标企业75分位值)水平以下的不得行使。

    (三)完善上市公司股权激励对象业绩考核体系,切实将股权的授予、行使与激励对象业绩考核结果紧密挂钩,并根据业绩考核结果分档确定不同的股权行使比例。

    (四)对科技类上市公司实施股权激励的业绩指标,可以根据企业所处行业的特点及成长规律等实际情况,确定授予和行使的业绩指标及其目标水平。

    (五)对国有经济占控制地位的、关系国民经济命脉和国家安全的行业以及依法实行专营专卖的行业,相关企业的业绩指标,应通过设定经营难度系数等方式,剔除价格调整、宏观调控等政策因素对业绩的影响。

3. Controlling the level of equity incentive earnings and integrating equity incentive earnings with the growth of performance index  

In accordance with the principle of associating the stock price with the operating performance, and matching the growth of equity incentive earnings with the growth of operating performance, the listed companies shall integrate their equity incentive earnings with the performance evaluation index, which means controlling the growth of equity incentive earnings reasonably according to the schedule of exercising equity rights, considering the performance and stock price of the listed company based on the anticipated earnings of equity incentive planned in the beginning, and on the achievement of the performance evaluation objective for equity incentive plans. Specific measures are listed as follows:

(1) Where the equity incentive earnings do not exceed the level determined at the beginning of the plan and achieve the evaluation standard, the rights can be exercised as scheduled. 

(2) For listed companies whose stock price is so high within the effective period of exercising rights that the actual earnings from exercising stock options (or stock appreciation right) exceed the anticipated earnings, the actual equity incentive earnings shall be controlled rationally according to the achievement of evaluation index and the growth of the stick price, which means that within the effective period of exercising rights, the maximum proportion of equity incentive earnings in the total remuneration (including equity incentive earnings) when granting stock options (or stock appreciation right) shall not in principle exceed 40% for domestic listed companies and overseas H-share companies, and shall not in principle exceed 50% for overseas Red Chip companies. When the proportion of actual equity incentive earnings exceeds above percentage, the stock options (or stock appreciation right) shall not be exercised or the earnings shall be returned to the company. 

(3) The above provisions shall be specified in the measures for management of equity incentive plans or in the agreement for granting equities by a listed company. The restrictions on the level of equity incentive earnings shall be gradually relaxed with the perfection in the capital market and the development of the competitive advantages of listed companies.

       三、合理控制股权激励收益水平,实行股权激励收益与业绩指标增长挂钩浮动

    按照上市公司股价与其经营业绩相关联、激励对象股权激励收益增长与公司经营业绩增长相匹配的原则,实行股权激励收益兑现与业绩考核指标完成情况挂钩的办法。即在达到实施股权激励业绩考核目标要求的基础上,以期初计划核定的股权激励预期收益为基础,按照股权行使时间限制表,综合上市公司业绩和股票价格增长情况,对股权激励收益增幅进行合理调控。具体方法如下:

    (一)对股权激励收益在计划期初核定收益水平以内且达到考核标准的,可按计划予以行权。

    (二)对行权有效期内股票价格偏高,致使股票期权(或股票增值权)的实际行权收益超出计划核定的预期收益水平的上市公司,根据业绩考核指标完成情况和股票价格增长情况合理控制股权激励实际收益水平。即在行权有效期内,激励对象股权激励收益占本期股票期权(或股票增值权)授予时薪酬总水平(含股权激励收益,下同)的最高比重,境内上市公司及境外H股公司原则上不得超过40%,境外红筹股公司原则上不得超过50%。股权激励实际收益超出上述比重的,尚未行权的股票期权(或股票增值权)不再行使或将行权收益上交公司。

    (三)上述条款应在上市公司股权激励管理办法或股权授予协议上予以载明。随着资本市场的逐步完善以及上市公司市场化程度和竞争性的不断提高,将逐步取消股权激励收益水平限制。

4. Strengthen the management of equity incentive plans and regulating the implementation of equity incentive plans 

(1) Perfecting the mode of granting restricted stock and deciding the granting level of restricted stock based on the performance evaluation results. 

(a) Listed companies shall conduct strict performance evaluation as the premises for implementing the restricted equity incentive plan. The performance objective level when granting the restricted stock by listed companies shall not be less than the highest one among the following performance levels: the average performance level of the company in the immediately preceding three years; the actual performance level of the previous year; the average level of the same industry with the company (or 50 percentile of benchmarking enterprises).

(b) Strengthening the restriction on eligible participants of restricted equity. The focus of restricted equity incentive plan shall rest on the senior managers who will influence the future development of the company. The determination of the source and price of restricted equity shall comply with relevant stipulations provided by securities regulatory authorities. The investment of eligible participants of equity incentive plans shall not be less than 50% of the price of restricted equity provided by stipulations of security regulations. 

(c) The growth of earnings from restricted equity (excluding earnings from individual investment) shall not exceed the growth of performance index (based on performance objectives). 

(2) Restricting the scope of the participants of equity incentive plans and standardizing the rules for demission or retirement of the participants.  

The focus of the equity incentive plan shall rest on the senior managers and core technicians who have the ability to influence the operating performance and future development of the company. That scope shall not be extended at discretion. People who do not work for the listed company (including staff of controlling shareholders) are not eligible for equity incentive plans. Supervisors of domestic or overseas listed companies are also not eligible for equity incentive plans.   

When the participants of equity incentive plans have retired, are deceased, seconded or lose their capacity and ability to function normally, the equity which has met the requirements of exercising restriction and performance evaluation, can be exercised within half a year from the date of demission; otherwise, that equity shall not be exercised any more. When the eligible participants resign from their post or are dismissed, the equity that is not yet exercised will become void.  

(3) Regulating the parameters of calculating the fair value of equity incentive plans and reasonably determining the anticipated earnings of equity incentive plans. 

Listed companies adopting stock options (or stock appreciation right) incentive plans, shall select proper pricing model for valuation in accordance with accounting standards and international practice. The parameter of selection or calculation method shall be reasonable. 

Listed companies adopting restricted equity incentive plans shall refer to the option evaluation method in consideration of the appreciation value of the bestow part except for the value of bestow part of the restricted equity when determining the anticipated earnings of the equity incentive plans. 

(4) Regulating the management of granting quantity of equity incentive after the shares have been issued, distributed and divided. 

Where the total equity structure of the listed company has altered because of the issuance of new shares, a transfer or increase in equity, merger, division, counter-purchase or any other reasons, or it is necessary to adjust the quantity of the equity to be granted or the exercising price due to other reasons, the listed company shall report to regulatory organ of state-owned assets for recording purposes and authorize the shareholders' meeting or the board of directors to approve the decision thereon. The adjustment of the quantity of the equity to be granted, exercising price or other articles shall be approved by the shareholders' meeting after discussion with the board of directors. The listed company shall employ lawyers to issue professional opinions on whether the above adjustments comply with relevant laws and regulations, the articles of association and the provisions of equity incentive plans. 

(5) Standardizing relevant performing procedures and setting up working mechanism of public supervision and expert review. 

Setting up a communication and coordination mechanism between state holding shareholders of listed companies and regulatory organ of state-owned assets: The state holding shareholder of listed companies shall communicate with the regulatory organ of state-owned assets before the discussion of its equity incentive plans by the board of directors and shall submit the equity incentive plans approved by its board of directors, along with documents such as evaluation measures, to the regulatory organ of state-owned assets before the discussion of its equity incentive plans by shareholders' meeting. A listed company shall not implement equity incentive plans until it obtains the approval of its shareholders' in a duly convened meeting. 

Setting up a working mechanism of public supervision and expert review: The draft of equity incentive plans adopted by the board of directors of listed companies shall not only be published pursuant to the requirement of security regulatory authorities but shall also be published on the website of the regulatory organ of state-owned assets to receive supervision and comments from the public. At the same time, the listed company will invite related experts to review that equity incentive plan. The supervision, comments from the public and experts' opinions shall be regarded as significant evidence for examining and approving the equity incentive plan by the regulatory organ of state-owned assets.

Setting up a professional supervision mechanism by intermediary consulting institutions: The intermediary consulting institution drafting the equity incentive plan for listed companies shall deliver professional opinions on whether the equity incentive plan is normative and compliance, whether it will benefit the sustainable development of the listed company, as well as the impact of the said plan on shareholders' interests.   

(6) Regulating the conduct of State holding shareholders and perfecting the system of report and supervision over equity incentive plans 

The state holding shareholders of listed companies shall take the lead in complying with laws and regulations to implement national policies and protect the interests of investors.  

The state holding shareholders of listed companies shall perfect the reporting system of equity incentive plans in accordance with the provisions of documents No. 8 [2006] and No. 175 [2006] of the State-Owned Assets Supervision and Administration Commission as well as this Notice. The State holding shareholders shall submit the equity incentive plan approved by its shareholders' meeting to the regulatory organ of State-owned assets along with a copy to the Ministry of Finance. The State holding shareholders shall report the implementation of said equity incentive plan and the condition of exercising rights by eligible participants to the regulatory organ of state-owned assets in time for record-filing with a copy to the board of supervisors of the controlling enterprise, if there is a board of supervisors. 

The State holding shareholders shall supervise over the listed company to ensure compliance with the stipulations of "General Rules of Corporate Finance" and corporation accounting standards to provide a solid financial management and accounting basis for the implementation of equity incentive plans. 

The regulatory organ of state-owned assets shall take charge of the management and disclosure of the implementation progress of the equity incentive plan by the listed company, including specifically information such as reform of the company, achievement of the performance index, the remuneration level of eligible participants, the earnings from equity incentive plan, the performance evaluation etc.  

Companies listed on domestic and overseas stock markets shall comply with the provisions of the document No. 175 [2006] of the State-Owned Assets Supervision and Administration Commission.  The senior managers and core technicians shall implement the equity incentive plan on both the stock markets (domestic or overseas).   

For State holding listed companies which have implemented equity incentive plans prior to the issue of this circular, its state holding shareholder shall urge and require the listed company to modify the said equity incentive plan in accordance with this Notice and submit it to the State-owned Assets Supervision and Administration Commission of the State Council for recording purposes and implement it after the approval of its shareholders' meeting (or the board of directors).

       四、进一步强化股权激励计划的管理，科学规范实施股权激励

    （一）完善限制性股票授予方式，以业绩考核结果确定限制性股票的授予水平。

    1.上市公司应以严格的业绩考核作为实施限制性股票激励计划的前提条件。上市公司授予限制性股票时的业绩目标应不低于下列业绩水平的高者:公司前3年平均业绩水平;公司上一年度实际业绩水平;公司同行业平均业绩（或对标企业50分位值）水平。

    2.强化对限制性股票激励对象的约束。限制性股票激励的重点应限于对公司未来发展有直接影响的高级管理人员。限制性股票的来源及价格的确定应符合证券监管部门的相关规定，且股权激励对象个人出资水平不得低于按证券监管规定确定的限制性股票价格的50%。

    3.限制性股票收益（不含个人出资部分的收益）的增长幅度不得高于业绩指标的增长幅度（以业绩目标为基础）。

    （二）严格股权激励对象范围，规范股权激励对象离职、退休等行为的处理方法。

    上市公司股权激励的重点应是对公司经营业绩和未来发展有直接影响的高级管理人员和核心技术骨干，不得随意扩大范围。未在上市公司任职、不属于上市公司的人员（包括控股股东公司的员工）不得参与上市公司股权激励计划。境内、境外上市公司监事不得成为股权激励的对象。

    股权激励对象正常调动、退休、死亡、丧失民事行为能力时，授予的股权当年已达到可行使时间限制和业绩考核条件的，可行使的部分可在离职之日起的半年内行使，尚未达到可行使时间限制和业绩考核条件的不再行使。股权激励对象辞职、被解雇时，尚未行使的股权不再行使。

    （三）规范股权激励公允价值计算参数，合理确定股权激励预期收益。

    对实行股票期权（或股票增值权）激励方式的，上市公司应根据企业会计准则等有关规定，结合国际通行做法，选取适当的期权定价模型进行合理估值。其相关参数的选择或计算应科学合理。

    对实行限制性股票激励方式的，在核定股权激励预期收益时，除考虑限制性股票赠与部分价值外，还应参考期权估值办法考虑赠与部分未来增值收益。

    （四）规范上市公司配股、送股、分红后股权激励授予数量的处理。

    上市公司因发行新股、转增股本、合并、分立、回购等原因导致总股本发生变动或其他原因需要调整股权授予数量或行权价格的，应重新报国有资产监管机构备案后由股东大会或授权董事会决定。对于其他原因调整股票期权（或股票增值权）授予数量、行权价格或其他条款的，应由董事会审议后经股东大会批准;同时，上市公司应聘请律师就上述调整是否符合国家相关法律法规、公司章程以及股权激励计划规定出具专业意见。

    （五）规范履行相应程序，建立社会监督和专家评审工作机制。

    建立上市公司国有控股股东与国有资产监管机构沟通协调机制。上市公司国有控股股东在上市公司董事会审议其股权激励计划之前，应与国有资产监管机构进行沟通协调，并应在上市公司股东大会审议公司股权激励计划之前，将上市公司董事会审议通过的股权激励计划及相应的管理考核办法等材料报国有资产监管机构审核，经股东大会审议通过后实施。

    建立社会监督和专家评审工作机制。上市公司董事会审议通过的股权激励计划草案除按证券监管部门的要求予以公告外，同时还应在国有资产监管机构网站上予以公告，接受社会公众的监督和评议。同时国有资产监管机构将组织有关专家对上市公司股权激励方案进行评审。社会公众的监督、评议意见与专家的评审意见，将作为国有资产监管机构审核股权激励计划的重要依据。

    建立中介服务机构专业监督机制。为上市公司拟订股权激励计划的中介咨询机构，应对股权激励计划的规范性、合规性、是否有利于上市公司的持续发展、以及对股东利益的影响发表专业意见。

    （六）规范国有控股股东行为，完善股权激励报告、监督制度。

    国有控股股东应增强法制观念和诚信意识，带头遵守法律法规，规范执行国家政策，维护出资人利益。

    国有控股股东应按照国资发分配〔2006〕8号、国资发分配〔2006〕175号文件及本通知的要求，完善股权激励报告制度。国有控股股东向国有资产监管机构报送上市公司股东大会审议通过的股权激励计划时，应同时抄送财政部门。国有控股股东应当及时将股权激励计划的实施进展情况以及激励对象年度行使情况等报国有资产监管机构备案;国有控股股东有监事会的，应同时报送公司控股企业监事会。

    国有控股股东应监督上市公司按照《企业财务通则》和企业会计准则的规定，为股权激励的实施提供良好的财务管理和会计核算基础。

    国有资产监管机构将对上市公司股权激励的实施进展情况，包括公司的改革发展、业绩指标完成情况以及激励对象薪酬水平、股权行使及其股权激励收益、绩效考核等信息实行动态管理和对外披露。

    在境外和境内同时上市的公司，原则上应当执行国资发分配〔2006〕175号文件。公司高级管理人员和管理技术骨干应在同一个资本市场（境外或境内）实施股权激励。

    对本通知印发之前已经实施股权激励的国有控股上市公司，其国有控股股东应按照本通知要求，督促和要求上市公司对股权激励计划进行修订完善并报国资委备案，经股东大会（或董事会）审议通过后实施。

State-owned Assets Supervision and Administration Commission of the State Council

Ministry of Finance of People's Republic of China 

October 21, 2008

    国务院国有资产监督管理委员会

    中华人民共和国财政部

    二OO八年十月二十一日