1. Considerations for the cash dividend payment model
Dividends , whether fixed or excess, are short-term incentives. The payment mode of dividend cash is mainly based on the following considerations.
(1) Convert short-term incentives into relatively long-term incentives.
(2) Set the rules of no longer paying after resignation, forming constraints on the service period of the incentive object.
(3) Avoid short-term behaviors of incentive objects.
(4) Resolve the immediate cash pressure of the enterprise.
(5) Balance the fluctuation of the performance target within the validity period of the dividend right plan, and avoid the situation that there is a dividend incentive for completing the target and no constraints in the year when the performance is not completed.
2. Cashing method
In the process of implementing the dividend right plan, dividends are often not paid in one lump sum on the spot, and the cashing methods are as follows.
(1) One accounting per year, and one dividend per year. At the end of each year, the total amount of fixed dividends or excess dividends is calculated based on the completion of the annual performance targets for the year.
(2) Deferred payment. Payments are made in two, three or four years, with three-year regressive payments being the more common practice. For example, the profit target in 2017 is 13.2 million yuan, the actual completion is 15 million yuan, the overfulfillment is 1.8 million yuan, and the excess dividend ratio is 60%, that is, the total dividend is 1.08 million yuan. Then, after the financial report is issued in early 2018, the first installment will be paid, such as 50%, or 540,000 yuan; in 2019, another 30%, or 324,000 yuan, will be paid; in 2020, the remaining 20%, or 216,000 yuan will be paid. If the incentive object resigns, the dividends paid before resignation do not need to be returned, but the dividends that have not been paid at the time of resignation will not be paid.
If the second year (2018) exceeds 1 million yuan again, the dividend ratio is 60%, that is, the total dividend is 600,000 yuan. Then according to the above deferred payment method, 300,000 yuan can be obtained in 2019, plus the 324,000 yuan paid in 2017 deferred to 2019, the total amount of dividends obtained in 2019 is: 30+32.4=624,000 yuan.
(3) Partially paid in cash, part of which is retained to subscribe for real shares of the company. This part of the content will be explained in the method of converting virtual shares to real shares later in this chapter.
Dividends , whether fixed or excess, are short-term incentives. The payment mode of dividend cash is mainly based on the following considerations.
(1) Convert short-term incentives into relatively long-term incentives.
(2) Set the rules of no longer paying after resignation, forming constraints on the service period of the incentive object.
(3) Avoid short-term behaviors of incentive objects.
(4) Resolve the immediate cash pressure of the enterprise.
(5) Balance the fluctuation of the performance target within the validity period of the dividend right plan, and avoid the situation that there is a dividend incentive for completing the target and no constraints in the year when the performance is not completed.
2. Cashing method
In the process of implementing the dividend right plan, dividends are often not paid in one lump sum on the spot, and the cashing methods are as follows.
(1) One accounting per year, and one dividend per year. At the end of each year, the total amount of fixed dividends or excess dividends is calculated based on the completion of the annual performance targets for the year.
(2) Deferred payment. Payments are made in two, three or four years, with three-year regressive payments being the more common practice. For example, the profit target in 2017 is 13.2 million yuan, the actual completion is 15 million yuan, the overfulfillment is 1.8 million yuan, and the excess dividend ratio is 60%, that is, the total dividend is 1.08 million yuan. Then, after the financial report is issued in early 2018, the first installment will be paid, such as 50%, or 540,000 yuan; in 2019, another 30%, or 324,000 yuan, will be paid; in 2020, the remaining 20%, or 216,000 yuan will be paid. If the incentive object resigns, the dividends paid before resignation do not need to be returned, but the dividends that have not been paid at the time of resignation will not be paid.
If the second year (2018) exceeds 1 million yuan again, the dividend ratio is 60%, that is, the total dividend is 600,000 yuan. Then according to the above deferred payment method, 300,000 yuan can be obtained in 2019, plus the 324,000 yuan paid in 2017 deferred to 2019, the total amount of dividends obtained in 2019 is: 30+32.4=624,000 yuan.
(3) Partially paid in cash, part of which is retained to subscribe for real shares of the company. This part of the content will be explained in the method of converting virtual shares to real shares later in this chapter.