(China Alert) Aligning interest: ESOPs and corporate actions

• FMC restructuring should accelerate in 2016
• China Universal’s ESOP is indicative of more to follow
• Foreign shareholders may need a Plan B for their JVs

Update: Volatile market conditions are forcing the fund management industry to reevaluate the way FMC shareholders and management align interests. Last December’s approval of China Universal’s ESOP is a perfect example of how this is all playing out with an increasing number of firms working overtime to restructure ownership and equity. What’s more, shifting economic sands are expected to see the trend in corporate actions, broadly speaking, accelerate. There is even the increased likelihood that there will be more than a few difficult conversations between stakeholders (especially at the JV level). In full disclosure, Z-Ben Advisors does provide support to certain clients on issues of ESOP valuation and execution.

China Universal’s ESOP wasn’t…