(Yicai Global) Dec. 15 -- China United Network Communications Group Co., one of the country's three major telecoms operators, has developed an employee stock ownership plan nearly four months after announcing its mixed ownership reform scheme.
Under the ESOP, roughly 3 percent of the group's employees will get stocks, holding 101,000 shares each.
The first stage of the ESOP involves 847.9 million restricted stocks being issued to 7,550 employees. Most of them are mid-level managers, while some are core management staff and professional talents that have directly contributed to the group's performance and sustained development, QQ Finance reported today.
China Unicom has about 250,000 employees.
The firm's stock ownership incentive plan has strict employee performance requirements. The restricted stocks have a two-year lock-up period and a three-year unlocking one, during which employees must reduce their holdings each year. This means that employees must continue to work at the group and meet the performance goals for the next five years if they want to cash in all their stocks.
China Unicom has set targets for the group and employees in the next five years, a worker said. The group will repurchase stocks and deregister them if the goals are not met, meaning employees will not be able to transfer them for cash.
China Unicom published its reform plan in August, indicating that its listed unit, China United Network Communications Ltd. [SHA:600050], will implement it. The company also held a CNY9.04 billion (USD1.37 billion) private placement and transferred CNY1.9 billion to investment funds by means of assignment of agreement. The group's shareholding ratio will drop to 36.67 percent from 62.74 percent after the completion of the mixed ownership reform.