An optoelectronic: employees to "oneself", "leveraging" high leverage incentive mechanism

13, the disclosure of employee stock ownership plan (Draft), including the company's 11 executives, including the staff of the fund will raise $308 million to set up the program, of which the executive team invested 64 million 300 thousand yuan, accounting for the proportion of $20.87%. The stock ownership plan will permit the establishment of commission Hing Securities Asset Management Limited, the secondary share and full subscription information management the establishment of Xing Xin Zhong No. 1 set in the plan, followed by Xin Zhong No. 1 buy and hold an optoelectronic stock.

Plan shows that the total number of shares held by Xin Zhong 1, a total of not more than 10% of the total share capital of Sanan optoelectronics; and Xin Zhong No. 1 general meeting of shareholders will be in 6 months by the employee stock ownership plan within two market through the completion of the underlying stock purchase.

It should be noted that the number of plans to participate in the congregation of 1 public limit of up to 930 million copies (corresponding to the funds of $930 million), and in accordance with the proportion of 2:1 to establish the preferred share and secondary share. The preferred share is based on the benchmark rate of return 7.4% actual survival days of preferential benefit, and to protect the part of investors, the controlling shareholder of Fujian Sanan Sanan optoelectronics group will provide a guarantee for Xinzhong No. 1 priority share rights.

It is not difficult to see, with the classification of products, the contribution of the staff involved in an optoelectronic equivalent to hold "in investment, its own shares process enabled 1:2 leverage, profit and loss ratio can be magnified. According to the disclosure, the above employees to participate in the stock of the source of funds for the employee's legitimate salary, self financing, etc.. This means that if some employees self financing, including the part of the loan, then the actual leverage ratio will be further expanded.

A brokerage analysts said, adding leverage Sanan optoelectronics ESOP, its purpose is to enhance the effect of incentive.

For more information about LED, please click on China LED network or pay attention to WeChat public account (cnledw2013).