Over 80% of Hong Kong's current listed companies have implemented employee share plans, which typically take the form of stock options or restricted stocks. Employee share plans allow employees to become shareholders and gain voting rights after exercising their options or when restricted stocks are vested. In this article we’ll examine the options for employee shareholder voting and methods to increase voting participation.
Employee shareholder voting options
There are two primary methods for employee shareholders to exercise their voting rights: nominee voting and on-site voting.
Nominee voting is usually managed through a nominee account. This type of account is accessible through Computershare’s employee share plan portal and serves as a place to hold stocks.
Our digital voting solution enables your employees to log in to the platform at their convenience to lodge their votes. This option is most suitable for companies with a large number of employee shareholders, as it simplifies the voting process and increases convenience. It also helps mitigate the risk of employee shareholders missing out on lodging their votes due to their inability to attend a meeting in person.
Computershare’s effective online voting platform offers an array of user-friendly features and support customisation. The platform allows companies to customise branding and upload documents such as resolutions for shareholder meetings and voting forms. It also supports multiple languages including, English, Simplified and Traditional Chinese. The platform also provides services around the clock, enabling employees worldwide to lodge votes at their convenience. This not only enhances employees' sense of ownership but also significantly reduces administrative burdens for companies.
The second voting method companies can utilise is on-site voting. If employees hold stocks under the company's share plan, both they and their proxies have the right to vote on-site at meetings, just like regular shareholders. All the company needs to do is request and complete the necessary forms or authorisations, and Computershare will submit the on-site voting intentions to the Central Clearing and Settlement System (CCASS).
Increasing employee voting participation
In addition to selecting the appropriate voting methods, there are methods companies can use to further enhance employee voting participation:
Early communication and promotion
Companies can proactively communicate important voting information to employee shareholders, including voting deadline, channels, and procedures. To ensure that employee shareholders are aware and engaged in voting activities, it’s best to take a multi-channel approach for communication and promotion. This can include channels such as, your company’s website, internal notifications and emails, employee share plan portal, and instructional documents on how to vote, which Computershare can provide.
Emphasise the importance of employee shareholder voting
Within the communication and promotion efforts directed at employee shareholders, companies should highlight the significance of employee shareholder voting in company decision-making and governance. By explaining the impact and outcomes of voting, employee shareholders can realise their tangible influence on the company's development and decisions, thereby igniting their enthusiasm to participate.
Establish dedicated support teams
To assist employee shareholders who may be less familiar with the voting process, companies can establish dedicated support teams to address their questions and concerns. Computershare can provide professional assistance to employee shareholders through email and telephone services. These support teams can boost the confidence of employee shareholders and further enhance their voting participation.
To further enhance employee shareholder voting participation, companies should carefully select the appropriate voting methods and consider implementing strategies such as early communication and promotion to help emphasise the importance of employee shareholder voting. By also establishing dedicated support teams, companies can increase employee shareholder confidence and have a positive impact on voting participation.
If you are interested in employee shareholder voting services and would like to learn more, please contact our team today.