The employee shareholding reform of state-owned enterprises will be rolled out

Experiences will be summarized and pilot projects will be expanded at the end of 2018

As an important part of the mixed reform of state-owned enterprises, employee shareholding is expected to will be further expanded in the future. It was recently learned that the State-owned Assets Supervision and Administration Commission of the State Council will systematically summarize the pilot experience of employee stock ownership in state-controlled mixed-ownership enterprises by the end of 2018, expand the scope of the pilot, and establish a long-term incentive and restraint mechanism.

It is reported that the first batch of 10 employee shareholding pilot subsidiaries of central enterprises have all completed the first phase of capital investment. As of the end of November last year, 22 provinces, municipalities and autonomous regions had formulated operating methods and implementation details for employee stock ownership, and 158 companies in 27 provinces and cities were conducting employee stock ownership pilots. Lin Qingmiao, deputy director of the Reform Bureau of the State-owned Assets Supervision and Administration Commission, told reporters that the employee stock ownership pilot program can be said to be "a solid start, with a good start and initial results."

“This time employee stock ownership is very different from previous practices.” In Lin Qingmiao’s view, employee stock ownership in state-owned enterprises has experienced a long period of evolution and various forms of changes during the reform. Therefore, the pilot program will be implemented this time because the current employee stock ownership practice adheres to the "three no two essentials" compared with the past. The "three no's" are not to engage in all-person shareholding, not to engage in average shareholding, and not to engage in existing transfer of shareholding. In principle, it is new establishment or capital increase and share expansion. The "two musts" are to establish a mechanism for dynamic adjustment of equity. We must strictly prevent the loss of state-owned assets. Lin Qingmiao said frankly that in the past process of promoting employee stock ownership reforms, the share ratio structure was solidified and the incentive effect was gradually weakened. Therefore, the dynamic adjustment of shareholdings is particularly important. "In the past, when many companies engaged in employee stock ownership, the big problem was that there was no dynamic adjustment mechanism for equity. Gradually, the share ratio structure became solidified, the incentive effect became rigid, and the company could not sustain its development." Lin Qingmiao said.

“Adhering to the determination of shares based on positions and emphasizing the backbone shareholding is also a major feature of employee stock ownership at this stage.” Lin Qingmiao introduced that in fact, the words “post” and “bones” in “determining shares based on positions” Determining the relationship is also one of the difficulties in promoting employee stock ownership. To this end, pilot companies have also created many methods and provided some experience: some have different shareholding amounts in the front, middle and back offices, and some companies have multiple business sectors. , different business sectors give different coefficients. "In short, it must reflect the close connection between the position and the shareholding, insist on changing the position to the shareholding, and make regular adjustments after the shareholding is completed."

Employee shareholding has always been one of the important contents of the mixed ownership reform of state-owned enterprises. In August 2016, the State-owned Assets Supervision and Administration Commission released the top-level design plan for employee stock ownership; after the pilot was selected in November, the pilot plan was gradually completed; in July 2017, the pilot entered the specific operational implementation stage, and the industrial and commercial change registration for employee investment was completed and entered into the formal operating stage. In this process, non-public capital participated very actively, and the operation also adhered to the principles of fairness, justice and openness. The price for employee shares was exactly the same as the price for introducing external strategic investors, and during this capital investment process, in principle, It is a cash contribution. The reporter learned from China Eastern Logistics that since China Eastern Logistics' own capital is as high as 4.1 billion yuan, the stipulated upper limit of individual employee shareholding is 1%, but the actual amount is as much as 41 million yuan. "For the 125 employees who currently hold shares, they all have to spend real money. Holding shares is equivalent to carrying their wealth and working hard. They must move forward courageously." Li Jiupeng, general manager of China Eastern Logistics, said.

“Our employee shareholding ratio has reached 20%.” As a high-tech enterprise, the company has implemented mixed ownership and exerted itself as an industrial cultivation platform by exploring new models of market-oriented allocation of resources and innovation-driven development. Function.

In fact, especially in technology companies, employee stock ownership has become an important way to retain talents. The relevant person in charge of China Electrical Equipment Institute, one of the 10 employee stock ownership pilots, told reporters, "Electric Equipment Institute is located in the Pearl River Delta, and its business is in a completely market-oriented competitive field. In the past, rigid systems and mechanisms have led to the loss of corporate talents, especially the core team. The attrition is serious.” After the implementation of employee stock ownership, not only the brain drain was reduced, but some of the lost talents and teams also actively expressed their willingness to return to China Electrical Equipment Institute. It is reported that China Electrical Equipment Institute completed the mixed-ownership employee shareholding reform in May last year, introducing capital from non-public enterprises Zhejiang Chint Electric Co., Ltd., Dun'an Holding Group Co., Ltd., Jianxin (Beijing) Investment Fund Management Co., Ltd., and 450 Key employees hold shares, accounting for 30% of all employees, achieving a diversified shareholding structure. After the reform, China Electrical Equipment Institute was adjusted from a wholly state-owned subsidiary to a mixed-ownership enterprise controlled by state-owned enterprises (shareholding ratio 60%), strategic investors participating (shareholding ratio 18%), and key employees holding shares (shareholding ratio 22%).

According to the employee shareholding plan of the Electrical Equipment Institute, in terms of "who holds shares", we resolutely abandon the idea of ??"official position and welfare sharing", and consider those that have a great impact on the future development of the company, are highly related to performance, and are fungible. The core backbone with low performance will be included in the shareholding range. In terms of "how to divide", the number and quantity of shareholdings are determined based on the performance contribution and strategic importance of each business segment and the contribution of talents in each segment to the company's performance; in terms of "how to hold", through the establishment of a two-level shareholding platform The realization of indirect shareholding not only facilitates the flow of employees' shares, but also strengthens the "binding" between employees and the company through unified financing through the platform. In terms of "how to move", we implement the implementation of fixed shares according to positions, changes in shares when positions are changed, shares are adjusted according to performance, and shares are withdrawn when people leave, so as to avoid the solidification and rigidity of shareholdings.