Who can be the target of equity incentive for listed companies on GEM?

According to Article 8.4.2 of the Listing Rules of Growth Enterprise Market of Shenzhen Stock Exchange (revised in February, 2020), the incentive targets can include directors, senior managers, core technicians or core business personnel of listed companies, and other employees that the company thinks should be encouraged and have a direct impact on the company's operating performance and future development, except independent directors and supervisors.

Shareholders or actual controllers who individually or collectively hold more than 5% of the shares of listed companies, their spouses, parents and children, and foreign employees of listed companies who are directors, senior managers, core technicians or core business personnel in listed companies may become incentive targets. The listed company shall fully explain the necessity and rationality of the above-mentioned personnel becoming the incentive objects.

The following persons shall not be encouraged:

(1) Being recognized as an inappropriate candidate by the stock exchange within the last 12 months;

(2) Being recognized as an inappropriate candidate by the China Securities Regulatory Commission and its dispatched offices within the last 12 months;

(3) Having been given administrative punishment or taken market ban measures by the China Securities Regulatory Commission and its dispatched offices due to major violations of laws and regulations in the last 12 months;

(4) The situation that he is not allowed to be a director or senior manager of the company as stipulated in the Company Law;

(five) laws and regulations shall not participate in the equity incentive of listed companies;

(six) other circumstances identified by the China Securities Regulatory Commission.

This article does not constitute any investment advice, because policy issues are time-sensitive. For relevant answers, please refer to the latest content released by official website.