China approves stock incentives
22 July 2005
In a bid to improve corporate governance, China will allow the nation's publicly traded companies to give as much as 10% of their stock to directors, senior managers and other employees as incentives, Bloomberg reported. The move to boost investor confidence and promote higher employee performance comes as China's flagging capital markets hit eight year lows. Citic Securities Co, China's biggest publicly traded company, has said that once allowed it would give employees 30m shares as incentives. Sinochem International Corp will give managers 20m shares.