New scheme for SOES to foster growth

cctv.com 02-23-2006 10:48

The government will soon introduce a stock option scheme for managers at China's overseas-listed State-owned enterprises (SOEs), which analysts say is an important step in promoting the healthy growth of the companies in the long run.

This scheme is drafted by State-owned Assets Supervision and Administration Commission (SASAC), and it will take effect from March the 1st. The decision is at the heels of a relaxation of a nine-month-old ban on management buyouts in large-scale SOEs. Under the stock option plan, management will be motivated not to indulge in shortsighted business moves, as their compensation is related to their companies' performance in the longer term. According to the SASAC's new rules, employees at China's overseas listed SOEs that are entitled to participate in the stock option plan primarily include directors, senior managers and core technology professionals.

Editor:Wang Ping  Source:CCTV.com