SANY Heavy Industry to Offer Its Employees 178 Million IOSs

●Based on its incentive plan, SANY Heavy Industry Co., Ltd. plans to inspire 2,533 employees including more than 10 senior managers with 178 million shares.
●“Equity Incentive + High Wages + Promotion Space = The Success Of Staff”, is the formula of happiness provided by SANY for its staff.

On Nov. 7, SANY Heavy Industry put forward an equity incentive plan. In its announcement, the company plans to grant a total of 178.2551million incentive stock options (IOSs) to 2,533 employees, including directors, chief executives, middle-level managers and core business personnel and technicians.

The announcement disclosed that the incentive plan was composed by the stock options plan and restricted stocks plan. Based on the plan, the exercise price of the stock option is 9.38 RMB per share and the strike price of the restricted stocks is 4.69 RMB per share. The ratio of stock option reaches nearly 90%, while the ratio of restricted stocks is only 10%. Only the company’s annual net profit in 2013, 2014 and 2015 increase by no less than 10% over the previous year (the net profit in cooling-off period is no less than the average value of the previous 3 years) can the exercise be valid. The double assessment of market value and real economy has demonstrated management’s faith towards the share price and the performance of the company.

According to its plan, SANY Heavy Industry will offer 178 million IOSs to 2,533 employees, including directors, chief executives, middle-level managers, and core business personnel and technicians. Our reporter analyzed the data and concluded that those 2,533 employees would receive over 70 thousand IOSs per person. This plan will provide more benefit and cover more employees, which is rarely seen in the company’s history. It’s also a real “Employee Stock Ownership Plan”, embodying the tripartite benefit among the company, the employees and the shareholders.

Hu Tiejun, a mid-level manager in company’s quality department, has performed outstandingly in his work and made inestimable contribution to improve the product quality. On hearing that he has been listed as one of the 2,533 employees, Hu was overjoyed. He said it more firmed his confidence to develop himself together with the company. “Now, my work is directly related to the company performance. So I’m more willing to work harder.”

Liu Cunyong from Concrete Pumping Machinery BU in SANY Heavy Industry also expressed his joy with the incentive plan. He is one of the key research personnel in developing SANY’s star product 86m pump truck. He said, the company has already provided a great deal of benefit for the staff, such as the basic necessities of life, training and opportunity to work abroad.

After releasing the incentive plan, SANY’s president Xiang Wenbo said: “Our company has achieved a great development. Therefore, besides contributing more to the society, we should share the success with our staff. It’s they who are the blood of the company; it’s they who are the resource of SANY’s existence and development. Today, the incentive plan will certainly inspire our staff, injecting great impetus into SANY’s development and creating more returns for the shareholders.”

According to Xiang, through the incentive plan, SANY will created more millionaires, multimillionaire and even billionaires to realize the dream of turning SANY into “the Rich Manufacturer”.