The duration of the employee stock ownership plan in the stock market is 18 months: the stocks held by employees cannot be sold within 18 months of listing. The duration of the employee stock ownership plan in the stock market is equivalent to restricted shares. When a stock is just listed, the stocks held by employees will definitely experience a large increase, and some employees will want to sell the stocks for arbitrage, which will affect the stocks that have just been listed. Therefore, the 18-month duration of the employee stock ownership plan in the stock market is to stabilize newly listed stocks and allow stock-holding employees to sell their stocks after 18 months.
For example, the most famous employee stock ownership plan with a duration of 10 years is the employee stock ownership plan launched by Haitong Securities.
The scope of participation in the plan is all employees of the company and its subsidiaries, with no limit to the total number of employees, and the number of underlying stocks obtained by any holder through the employee stock ownership plan shall not exceed the total share capital of the company. 1%, and the minimum subscription amount per person shall not be less than 100,000 yuan. Sources of funds include employees' legal salaries, self-raised funds, and other methods permitted by laws and regulations.
The announcement shows that after the establishment of the employee stock ownership plan, a manager will be entrusted to set up an asset management plan for management, and the investment scope will be the purchase and holding of the company's A shares. The lock-up period for the underlying stocks acquired by the asset management plan through secondary market purchases is no less than 12 months. If private placement is adopted, the lock-up period is 36 months, starting from the company’s announcement of the last purchase and transfer of the underlying stocks in the period. It starts from the date when the employee stock ownership asset management plan is named.
Haitong Securities stated that the duration of the employee stock ownership plan is 10 years, starting from the date when the employee stock ownership plan is reviewed and approved by the shareholders’ meeting. The employee stock ownership plan will terminate automatically upon expiration. It may be terminated or extended in advance upon review and approval at the general meeting of shareholders or in accordance with relevant laws and regulations.
Haitong Securities Co., Ltd. (hereinafter referred to as Haitong Securities) (Haitong Securities Company Limited SH: 600837) is one of the earliest and most comprehensive securities companies in China. It has an integrated business platform and a large With its marketing network and strong customer base, traditional businesses such as brokerage, investment banking and asset management rank among the best in the industry, and innovative businesses such as margin trading, stock index futures and PE investment lead the industry.
Haitong Securities was established in 1988. It is the only large domestic securities company established in the 1980s that is still in operation and has not changed its name or received capital injection from the government. The company’s predecessor was Shanghai Haitong Securities Company was restructured into a limited liability company in 1994 and developed into a national securities company. At the end of 2001, the company was restructured into a joint stock limited company.