中国移动人力资源项目薪酬及期权项目报告说明会.pdf

'ChinaMobileHumanResourcesEnhancementProjectMeetingAcentureConsultancyCo.,LtdJuly,2001 Agenda©ProjectdeliverableDiscussionPartI：MarketComparisonResultPartII：SalaryStructureDesignPartIII：BenefitPlanSuggestionPartIV：StockOptionPlanSuggestionDraftforDiscussionConfidentialonlyPage2 PartII.SalaryStructurePage3 ConsiderationsinSalaryStructuredesign©BasedontheproposedsalarystructurediscussedinlastmeetingonJune1st,andtheinterviewwithChinaMobiletopmanagement,consideringthecurrentsalarysituationofChinaMobilethreepilotsites,suggestedsalarystructureisdesignedbasedonthefollowingpayphilosophy：–Allemployees’GuaranteeCashshouldbecorrespondtoMarketmedian(P50).Andbasedonthemarkettrend,widentheGCgapamongdifferentlevelsofemployeesgradually,thuschangethecurrentsituationthatGCvariesslightlyamongdifferentlevels.–AdjustthepercentageofVariablePayVsGuaranteeCash,thuschangethecurrentsituationthatVPpercentageistoohigh.–WidentheTotalCashsalarygapamongdifferentlevelsbasedontheMarkettrend.–TimeframeforachievingTargetMarketPosition:3yearsPage4 ConsiderationsinSalaryStructuredesign©Inordertoincreasetheaccuracyofthenewsystemdesign,andmakeiteasiertodocostanalysis,theproposednewsalarystructureadoptstheactualsalarydataofallemployeesprovidedbyHRdepartmentofChinaMobileBeijing,HebeiandShandong©ThegradinginformationadoptedinthenewsalarystructureisbasedonGGS,whichisjustforsalarystructuredesignuse,notthefinalgradingresultforChinaMobile©AccordingtoAcenturesurvey,annualsalaryincreaseratevariesfrom5%to11%,soweassumetheaveragesalaryincreaserateofmarketwillbeat8%inthenextthreeyearsPage5 SalaryStructureDesign-GuaranteeCash©ThefirststepforsalarystructuredesignistosettheGuaranteeCashforeachgradebenchmarkingwithmarketsituation.Thedetailprocessisasfollowing:SettheAnchorpointSettheAnchorpointforMid-PointforMid-PointadjustmentadjustmentSettheSalarySettheSalaryProgressionProgressionSettheRangeSettheRangeSpreadforeachSpreadforeachgradegradePage6 GuaranteeCash－AnchorPoint©Grade11areselectedtobetheanchorpointsforsalarystructuremidpointdesign,followingisthedetailinformationforthreetimesadjustment:BeijingHebeiShandongPage7 GuaranteeCash－Mid-pointProgression©Mid-pointprogressionreferstothepercentagedifferencebetweenthepaygrademid-points.Thelargerthemid-pointsprogression,thefewerthenumberofjobgradeswithinapaystructure.©Therearetwoconsiderationswhensettingmid-pointprogressionÈiftheprogressionistoohigh,possibleresultcouldbecostlypromotionalincreasesÈiftheprogressionisrelativelylow,possibleresultcouldbesalarycompressionissuesanddifficultyinmatchingpromotionswithappropriatecompensationreward©Consideringthewholestructure,theprogressionisadjustedgraduallybygrade,tillintheendthestructureisadjustedtothesituationthatthehigherthegradeis,thebiggerthepaygapis.BeijingHebeiShandongGrade17~19(SeniorMgt.)12~24%(Increase)18~23%(Increase)10~23%(Increase)Grade12~16(MidMgt.)12~23%(Increase)17~23%(Increase)10~23%(Increase)Grade6~11(Supervisor)5~23%(Increase)10~22%(Increase)10~21%(Increase)Grade1～5(GeneralStaff)5~21%(Increase)5~20%(Increase)1~20%(Increase)Page8 GuaranteeCash－Mid-pointProgressionBeijingHebeiShandongPage9 GuaranteeCash－RangeSpread©Asalaryrangeconsistsofaminimumpayvalue,amaximumpayvalueandamid-point.Thedifferencebetweenthemaximumandtheminimumistherangespreadorthethewidthoftherange©Rangespreadsvarybasedonthelevelofsophisticationofskillsrequiredforajob.Jobsrequiringskillswhichcanbemasteredquicklyusuallyhaveanarrowerpayrange.Seniorjobswhichrequirealongerlearningcurveandoftenhavelimitedopportunitiesforadvancementtendtohaveawiderpayrange©CurrentlyChinaMobileBeijing’srangespreadisrelativelybig,thusweadjusttherangespreadgraduallybasedonthemarkettrend.Intheend,thesituationisthatthehigherthegradeis,thewidertherangespreadis.BeijingHebeiShandongGrade17~19(SeniorMgt.)35~45%(Increase)35~45%(Increase)35~40%(IncreasGrade12~16(MidMgt.)35~40%(Increase)35~40%(Increase)35~35%(NoChanGrade6~11(Supervisor)35~30%(Decrease)35~30%(Decrease)35~30%(DecreasGrade1～5(GeneralStaff)35~20%(Decrease)35~20%(Decrease)35~20%(DecreasPage10 GuaranteeCash－RangeSpreadBeijingHebeiShandongPage11 GuaranteeCash－Mid-PointAdjustmentProcessBeijingHebeiShandong1stAdjustment2ndAdjustment1stAdjustment2ndAdjustment1stAdjustment2ndAdjustment3rdAdjustment2001MarketMedium3rdAdjustment2001MarketMedium3rdAdjustment2001MarketMedium2002MarketMedium2003MarketMedium2002MarketMedium2003MarketMedium2002MarketMedium2003MarketMedium900,000600,000800,000800,000700,000500,000700,000600,000600,000400,000500,000500,000300,000400,000400,000Guaranteed(RMBp.a.)Guaranteed(RMBp.a.)300,000300,000200,000GaranteedCash(RMBp.a.)200,000200,000100,000100,000100,000000135791357911131517191357911131517191113151719GradeGradeGradePage12 GuaranteeCash－AdjustmentResult©SincecurrentlyinChinaMobile,theGuaranteeCash(BaseSalary)isquitelowcomparingwiththemarketsituation.Sobasedontheabovedesign,aftertheadjustment,theGuaranteeCashhasbeenincreased,andthehigherthegradeis,thebiggeradjustmentforGuaranteeCashhasbeenmade.GuaranteeCashBeijingHebeiShandongIncreasingrateGrade17~19(SeniorMgt.)122~146%60~61%149~178%Grade12~16(MiddleMgt)82~118%33~49%99~124%Grade6～11(Professional35~79%9~29%51~85%&Supervisor)Grade1~5(GeneralStaff)2~30%-1~6%5~45%Page13 GuaranteeCash－AdjustmentResultBeijingHebeiShandongPage14 GuaranteeCash－MarketComparison©FollowingistheGuaranteeCashmarketcomparisonresultafterthethreetimesadjustmentMarketComparisonBeijingHebeiShandongGrade17~19(SeniorMgt.)17~105%(Increase)49~99%(Increase)15~101%(Increase)Grade12~16(MidMgt.)23~102%(Increase)55~99%(Increase)21~99%(Increase)Grade6～11(Professional&36~100%(Increase)80~103%(Increase)34~103%(Increase)Supervisor)Grade1~5(GeneralStaff)67~110%(Increase)195~104%(Decrease)62~105%(Increase)Note：100%=P50©Afteradjustment,theGuaranteeCashofthreepilotcitiesemployeehasbeenincreasedcomparedwithmarket.OnlyfortheGrade1-5ofHebeiMobileithasbeendecreasedsinceitscurrentsituationismuchmorethanmarketmedian.Page15 GuaranteeCash－MarketComparisonBeijingHebeiShandongPage16 SalaryStructureDesign-PercentageofVariablePayVs.GuaranteeCash©ThesecondstepforsalarystructuredesignistosetthepercentageofVPVs.GC.©Fordifferentlevel,differentpercentageofVPVs.GChasbeenset.Thusafteradjustment,thehigherthegradeis,thehigherthepercentageis.AndthecurrentunnormalsituationthatVPismuchhigherthanGCcanbechangedaccordingotthemarkettrend.©FollowingisthedetailpercentageofVPVs.GCafterthreetimesadjustment:VPPercentageBeijingHebeiShandongGrade17~19(Senior1369~44%(Decrease123~44%(Decrease)485~44%(Decrease)Mgt.))Grade12~16(MidMgt.)843~30%(Decrease)127~30%(Decrease)311~30%(Decrease)Grade261~18%(Decrease)93~18%(Decrease)180~18%(Decrease)6～11(Professional&Supervisor)Grade1~5(GeneralStaff)144~8%(Decrease)67~8%(Decrease)208~8%(Decrease)Note:Sincethepercentageshouldvaryaccordingtothespecificperformance,herethepercentagesetisjustthepercentagerelatedwithtargetperformance.Page17 VPPercentageAdjustmentProcessBeijingHebeiShandongPage18 SalaryStructureDesign-TotalCash©Basedontheabovedesign,theTotalCashforhighergradeemployeeshasbeenincreasedgreatly,whiletheTotalCashforlowergraderemainstableorevendecrease:VPPercentageBeijingHebeiShandongGrade17~19(SeniorMgt.)7~17%40~50%58~75%Grade12~16(MidMgt.)7~15%20~33%43~56%Grade6～11(Professional3~32%-3~13%17~37%&Supervisor)Grade1~5(GeneralStaff)-12~5%-14~-6%-15~17%Page19 SalaryStructureDesign-TotalCashBeijingHebeiShandongPage20 SalaryStructureDesign-TotalCashMarketComparison©FollowingistheTotalCashMarketcomparisonresultafterthreetimesadjustment：MarketComparisonBeijingHebeiShandongGrade17~19(SeniorMgt.)101~125%(Increase)77~117%(Increase)48~116%(Increase)Grade12~16(MidMgt.)97~119%(Increase)82~114%(Increase)50~111%(Increase)Grade6～11(Professional&96~113%(Increase)105~113%(Stable)67~109%(Increase)Supervisor)Grade1~5(GeneralStaff)119~111%(Decrease)197~112%(Decrease)166~109%(Decrease)Note：100%=P50©Comparingwiththemarketdata,Totalcashhasbeenincreasedforthehighergrade,forthelowergrade,thetotalcashremainthesameasmarketmedian.Page21 SalaryStructureDesign-TotalCashMarketComparisonBeijingHebeiShandongPage22 SalaryStructureDesign-CostAnalysis©Afteradjustment,chinamobiletotalpayrollcostchangeisasfollowing：BJHBSDPage23 CostAllocationByGrade-BeijingHeadcountPercentageSecondtimeAdjustmentfordifferentGrade2.7%15.1%28.4%FirsttimeAdjustment18.9%0.4%15.7%2.8%7.0%18.7%63.4%64.2%62.8%CurrentCostAllocationbyGradeThirdtimeAdjustment17.7%13.5%3.4%2.8%19.9%20.4%58.6%63.8%CurrentSituationFutureSituationGrade1-5Grade6-11Grade12-16Grade17-19Page24 CostIncreaseAllocationByGrade-Beijing9.7%-0.3%4.5%86.0%0.6%6.1%21.8%FirsttimeAdjustment71.6%3.6%4.6%SecondtimeAdjustment25.4%66.4%Grade1-5Grade6-11Grade12-16Grade17-19ThirdtimeAdjustmentPage25 CostAllocationByGrade-HebeiHeadcountPercentageSecondtimeAdjustmentfordifferentGrade1.5%14.9%26.8%10.2%0.2%25.8%FirsttimeAdjustment1.3%17.2%23.6%56.7%63.8%CurrentCostAllocationbyGrade58.0%ThirdtimeAdjustment19.1%0.8%19.8%1.9%13.8%29.1%60.4%55.2%CurrentSituationFutureSituationGrade1-5Grade6-11Grade12-16Grade17-19Page26 CostIncreaseAllocationByGrade-Hebei15.6%-56.0%-10.8%151.2%6.90%-31.40%FirsttimeAdjustment93.20%31.30%7.00%-2.00%32.70%SecondtimeAdjustment62.30%Grade1-5Grade6-11Grade12-16Grade17-19ThirdtimeAdjustmentPage27 CostAllocationByGrade-ShandongHeadcountPercentageSecondtimeAdjustmentfordifferentGrade16.1%0.9%23.7%6.3%0.1%36.5%FirsttimeAdjustment14.2%0.7%26.0%57.0%59.3%CurrentCostAllocationbyGrade59.1%ThirdtimeAdjustment12.6%0.5%27.8%19.0%1.2%20.9%59.1%58.9%CurrentSituationFutureSituationGrade1-5Grade6-11Grade12-16Grade17-19Page28 CostIncreaseAllocationByGrade-Shandong19.3%1.1%20.5%2.0%13.6%59.1%24.3%FirsttimeAdjustment60.0%SecondtimeAdjustment2.2%8.9%31.6%57.3%Grade1-5Grade6-11Grade12-16Grade17-19ThirdtimeAdjustmentPage29 SalaryStructureResultI.ChinaMobile-BeijingPage30 Page31 Page32 Assumption:MarketSalaryIncreasingRate=8%Page33 Assumption:MarketSalaryIncreasingRate=8%Page34 Page35 Page36 Page37 Page38 BeijingSalaryStructure-1stTimeAdjustmentPage39 BeijingSalaryStructure-2ndTimeAdjustmentAssumption:MarketSalaryIncreasingRate=8%Page40 BeijingSalaryStructure-3rdTimeAdjustmentAssumption:MarketSalaryIncreasingRate=8%Page41 SalaryStructureResultII.ChinaMobile-HebeiPage42 Page43 Page44 Assumption:MarketSalaryIncreasingRate=8%Page45 Assumption:MarketSalaryIncreasingRate=8%Page46 Page47 Page48 Page49 Page50 HebeiSalaryStructure-1stTimeAdjustmentPage51 HebeiSalaryStructure-2ndTimeAdjustmentAssumption:MarketSalaryIncreasingRate=8%Page52 HebeiSalaryStructure-3rdTimeAdjustmentAssumption:MarketSalaryIncreasingRate=8%Page53 SalaryStructureResultIII.ChinaMobile-ShandongPage54 Page55 Page56 Assumption:MarketSalaryIncreasingRate=8%Page57 Assumption:MarketSalaryIncreasingRate=8%Page58 Page59 Page60 Page61 Page62 ShandongSalaryStructure-1stTimeAdjustmentPage63 ShandongSalaryStructure-2ndTimeAdjustmentAssumption:MarketSalaryIncreasingRate=8%Page64 ShandongSalaryStructure-3rdTimeAdjustmentAssumption:MarketSalaryIncreasingRate=8%Page65 PartIV.StockOptionPlanSuggestionPage66 CurrentShareSituation©ThetotalnumberofsharesinissueforChinaMobileis18,605,312,000inyear2000.TheoptionsoutstandingasofDecember31,2000is40,316,000shares.ThefollowingtableillustratesthecurrentsharesituationfortheChinaMobilestockoptionplan.Year2000Year1999Optionsoutstanding1January12,700,00012,000,000Optionsexercised3,974,0007,500,000Optionsgrantedintheyear31,590,0008,200,000Totalnumberofsharesinissue18,605,312,000%granted0.17%Optionsoutstanding31December40,316,00012,700,000Page67 PlanProvisions©Acenturewillbasedonmarketpractice,Acenture’sexpertiseandChinaMobiles’data(i.e.currentsharesituation,headcounts,salaryetc.)todesigntheproposedplan.CurrentProposedCommentEligibilityMiddleandseniormanagementConsiderrestrictingeligibilitytoBasedonmarketWatsonWyattgrade15or14practiceBasisforgrantsizeBasicshareamount,positionTargetgainapproach,basedFurthercoefficeint,performanceonexpectedgrowthrateindiscussioniscoefficientandyearofservicesharepricerequiredonstockcoefficientoptiongrantmethodology.GrantfrequencyIrregularAnnualBasedonmarketpracticeGrantprice80%oftheclosingprice5daysConsidergrantingoptionswithBasedonmarketpriortothegrantdateexercisepriceequaltoclosingpracticepriceVesting1st50%vestsafter2year,2nd25%peryearover4years.Basedonmarketrequirement50%vestsafter5yearsThe1st25%vestsafter1yearpracticeExpirationtermAbout7years10yearsfromgrantdateBasedonmarketpracticePage68 TargetOptionAmount-Hebei©Duetotherelativelylargedifferenceinguaranteedcashamongtheprovincecompanies,acompanywidetargetoptionawardamountcannotbefinalized.Asexamples,thefollowingthreetablesillustratethethreepilotcompanies’targetoptionawardamount.Furtherdiscussionisrequiredforthefinaltargetoptionawardamount.ExercisePrice(HK$)41.80ExercisePriceinRMB44.37TotalSharesOutstanding(TSO)18,600,000,000Sharepricegrowthratep.a.10%Period(years)whenalloptionsofthisgrantareassumedtobe4exercised(forgaincalculations)StockOptionGrantStructure(Hebei)GrantValueAverageGainasMinimumMaximumas%ofAssumedGuaranteedMultipleofGrantasTargetOptionGainatEndofLevelOptionOptionAnnualHeadcountCash(RMBGuaranteed%ofTSOAwardPeriod(RMB)AwardAwardGuaranteedp.a.)CashCash191209,4053.000.00016%21,80030,50639,240628,215646%183177,4622.500.00012%15,40021,54427,720443,655539%173150,3911.250.00005%6,5009,12911,700187,989269%1611127,4500.750.00002%3,3004,6425,94095,588162%159108,0090.500.00001%1,9002,6223,42054,005108%143092,3150.350.00001%1,1001,5691,98032,31075%Total576,336,4450.790.00131%173,900244,253313,0205,029,957Page69 TargetOptionAmount-BeijingExercisePrice(HK$)41.80ExercisePriceinRMB44.37TotalSharesOutstanding(TSO)18,600,000,000Sharepricegrowthratep.a.10%Period(years)whenalloptionsofthisgrantareassumedtobe4exercised(forgaincalculations)StockOptionGrantStructure(Beijing)GrantValueAverageGainasMinimumMaximumas%ofAssumedGuaranteedMultipleofGrantasTargetOptionGainatEndofLevelOptionOptionAnnualHeadcountCash(RMBGuaranteed%ofTSOAwardPeriod(RMB)AwardAwardGuaranteedp.a.)CashCash191114,4603.000.00009%11,90016,67421,400343,380646%17591,2471.250.00003%4,0005,5397,200114,059269%16881,4710.750.00002%2,1002,9673,80061,103162%151672,7420.500.00001%1,3001,7662,30036,371108%14964,9480.350.00001%8001,1041,40022,73275%Total392,970,8670.740.00057%76,700106,298137,2002,189,022Page70 TargetOptionAmount-ShangDongExercisePrice(HK$)41.80ExercisePriceinRMB44.37TotalSharesOutstanding(TSO)18,600,000,000Sharepricegrowthratep.a.10%Period(years)whenalloptionsofthisgrantareassumedtobe4exercised(forgaincalculations)StockOptionGrantStructure(ShangDong)GrantValueAverageGainasMinimumMaximumas%ofAssumedGuaranteedMultipleofGrantasTargetOptionGainatEndofLevelOptionOptionAnnualHeadcountCash(RMBGuaranteed%ofTSOAwardPeriod(RMB)AwardAwardGuaranteedp.a.)CashCash19187,0523.000.00007%9,10012,68216,400261,156646%17571,9441.250.00002%3,1004,3675,60089,930269%16465,4040.750.00001%1,7002,3823,10049,053162%152359,4580.500.00001%1,0001,4441,80029,729108%144354,0530.350.00000%7009191,30018,91975%Total764,400,2010.550.00063%84,500116,751154,1002,404,283Page71'