China's State-owned Assets Supervision and Administration Commission (SASAC) is taking a careful approach to a new stock option incentive scheme for top management at 166 state-owned enterprises. Stock options could be a "double-edged sword especially in an immature market economy," said Li Rongrong, a SASAC minister. State media said the scheme would include conditions that external directors should account for half the board of any SOE that introduces stock options and the salary committee must be made up of external directors. SASAC introduced a similar scheme in February for overseas-listed SOEs.
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