Chapter 1 General Provisions Article 1 In order to give full play to the advantages of mixed-ownership enterprises, stimulate the incremental value creation of cadres and employees through strengthening incentives, and promote the sustainable and healthy development of enterprises, these management measures are formulated in combination with the actual operation of the group.
Article 2 These measures apply to (Group) shares *** referred to as "Group Company") and its branches, wholly-owned subsidiaries and holding subsidiaries (collectively referred to as "Subsidiary Companies"). Group companies and subsidiaries are collectively referred to as "the Group". Applicable Excess Profit Sharing is subject to:
1) The corporate strategy is clear, and the medium and long-term development goals are clear;
2) The "Excess Profit Sharing Plan" has been formulated, and the profit target has been achieved in the current year;
3) The corporate governance structure is sound, and the foundation of human resource management is sound;
4) A standardized financial management system has been established, and no administrative or criminal penalties have been imposed for financial, taxation and other violations of laws and regulations in the past three years.
Article 3 When implementing the excess profit sharing mechanism, the following principles should generally be grasped:
1) Goal-oriented.
The goal is to achieve the strategic planning and annual business plan of the group company and its subsidiaries.
2) Market-oriented.
The excess profit-sharing mechanism should be guided by the market-oriented allocation of factors, and reflect the principle that the factors of production should be contributed by the market evaluation and the remuneration should be determined according to the contribution.
3) Incremental incentives.
On the basis of creating profit increment and taking incremental value distribution as the core, effective incentives are realized.
Chapter 2 Excess Profit Article 4 The target profit is the expected profit value set for the current year after comprehensively considering the development strategy, performance appraisal indicators, historical operating data and other comprehensive factors. The target profit can be determined in accordance with the annual budget and annual business plan of the group company or subsidiary, and the target profit of the group and the group company is the annual net profit attributable to the parent company approved by the board of directors (the value after considering the elimination of factors); The target profit of the subsidiary company is the planned value (after taking into account the elimination of factors) issued by the economic target responsibility letter.
In principle, the annual target profit of the group company and its subsidiaries shall not be lower than the higher of the following profit levels
1) Average profit in the past three years;
2) the level of profit calculated according to the good value of the industry's average return on equity;
3) The target value of the annual business plan budget.
If the subsidiary company has been established for less than three years, it will be the highest in items (2) and (3). Article 5 The excess profit is the difference between the actual profit and the target profit of the current year. When determining excess profits, the following factors can be considered to be excluded
1) Non-operating income of the current year caused by the disposal of major assets;
2) Changes in profits for the current year caused by mergers and acquisitions, restructurings, etc.;
3) Changes in profits for the year due to changes in accounting policies and accounting estimates;
4) Changes in profits for the year caused by external policies and major changes in the market environment;
5) Other exclusion factors that should be considered.
Article 6 The total excess profit sharing of the Group shall exceed 30% of the annual target profit value approved by the Board of Directors. Article 7 The total excess profit sharing ratio obtained by the senior management personnel of the group company shall not exceed 9% of the target profit value of the year.
Article 8 The excess profit sharing ratio of each subsidiary company shall not exceed 30% of the annual target profit value, and the differentiated excess profit sharing ratio may be determined according to the business characteristics of different subsidiary companies. In principle, the proportion of excess profit sharing obtained by the senior management personnel (or management team) of the subsidiary company shall not exceed 30% of the excess profit sharing amount of the unit.
Chapter 3 Incentive Objects Article 9 The incentive recipients need to sign a labor contract with the unit to work in the position for more than 1 year, and have a direct and important impact on the business performance and sustainable development of the enterprise's management, technology, marketing, business and other core backbone talents, and the number of incentives in each period of the subsidiary company generally does not exceed 30% of the total number of employees on the job of the enterprise.
Article 10 If the relevant personnel of the group company or the controlling shareholder work part-time in the enterprise, it shall be comprehensively determined whether they can participate in the excess profit sharing mechanism of the enterprise according to the job responsibilities they mainly perform their duties, the actual performance time and other factors. Only one eligible enterprise can participate in the excess profit sharing mechanism.
This article is excerpted from "Frontier Policies of Enterprises and Institutions", please send a private message for the full version.