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State firm executives to get stock options from March 1
By Zheng Lifei (China Daily)
Updated: 2006-02-23 05:52
"SASAC is likely to introduce stock option plans in domestically-listed SOEs
this year , probably in the latter half of this year," Wang said.
The introduction of the management stock option plan, which has been in
discussion for many years, is the latest move in the government's efforts to
reform SOEs.
Last month, SASAC relaxed a ban on management buyouts in large-scale SOEs,
allowing executives in those companies to purchase limited shares of the company
in which they work.
The government's decision to introduce a stock option plan in
overseas-listed SOEs is just the latest move to reform the SOEs and also a sign
that SOE reform is accelerating.
It comes at the heels of a relaxation last month of a
nine-month-old ban on management buyouts (MBO) in large-scale SOEs.
Following then widespread public concern that MBO were causing
State asset losses, authorities issued a rule last April freezing the MBO in
large-scale SOEs.
State-owned Assets Supervision and Administration Commission
(SASAC), the country's State company watchdog, relaxed the ban on January 22,
allowing limited purchases of shares by SOE executives.
In a bid to alleviate public worries that some SOE managers may
make use of the new regulation to their own gain and thus result in losses of
state assets, SASAC issued detailed guidelines on how those shares buyout
activities could be carried out. The new rule, for example, requires that
executives should provide certificates that can prove the validity of their
capital sources for their share purchase.
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