On the evening of January 31, China Public Education announced a draft equity incentive plan to grant 260 core employees no more than 40 million restricted shares, accounting for about 0.65% of the company's total share capital. Among them, the company-level performance assessment targets are that the revenue for 2024 and 2025 can reach 4 billion yuan and 4.6 billion yuan respectively. The high performance indicators fully reflect the confidence of the core management and management team in the company's long-term plans and continued high revenue growth over the next two years. It is worth mentioning that this is also China Public Education's first equity incentive plan since its listing.
According to the announcement, the 260 equity incentive targets include all core personnel working for the company. The grant price is 1.98 yuan/share. The restricted shares granted are unlocked in two installments 12 months and 24 months from the date the grant registration is completed, with unlocking ratios of 50% and 50%, respectively.
The company said that the purpose of this equity incentive plan is to further establish and improve the company's long-term incentive mechanism, attract and retain outstanding talents, fully mobilize the enthusiasm of the company's core personnel, effectively combine shareholders' interests, company interests and the individual interests of the core team, so that all parties can focus on the long-term development of the company.
In response to this incentive plan, China Public Education provided assessment indicators for instalment performance, which are company-level performance assessments and individual-level performance assessments, respectively. Among them, the company level mainly sets operating income as a performance assessment index. The scope of assessment is for the two fiscal years 2024-2025. Specifically, the target revenue values for 2024 and 2025 are assessment targets of 4 billion yuan and 4.6 billion yuan, respectively. At the individual level of performance assessment, the company will determine whether the individual incentive target has met the conditions for lifting sales restrictions on restricted stocks based on the performance evaluation results of the previous year of the incentive target.