Huang Yan, president of PetroChina, is one of 363 managers there who had most of his pay tied to a stock incentive program when the company listed in April. But he has options on 1.82 million shares. If there is no appreciation, I get nothing,'' says Huang, who is extending the plan to cover middle managers as well. Of course, there's still a long way to go before China's companies are truly accountable and transparent. Mobius bought PetroChina in the IPO but sold the shares in September.
Many companies remain stingy about releasing even public information.
In a typical case, a China Unicom Ltd. official flatly refuses to discuss the company's stock incentive plan, although it is detailed in a prospectus issued as part of its June IPO in New York and Hong Kong. Notwithstanding the lack of disclosure, Chinese companies are having no trouble floating stock. But as China enters the WTO, openness and honest accounting will become critical to reform. Managers who have gone back to school had better be ready for the test. The McGraw-Hill Companies Inc. All rights reserved.