SMIC Releases Equity Incentive Plan Worth 1.351 Billion Yuan

Source: SMIC

Chinese silicon chip maker SMIC on Monday announced on the official website of the Shanghai Stock Exchange that they decided to grant 67.5352 million restricted shares to 3,944 employees at a price of 20 yuan per share.

According to Chinese media AI Caijing, the total value of stocks is 1.351 billion yuan ($208 million), meaning that each person will get an average of 342,500 yuan ($52,779).

SMIC said that the plan is to further improve its long-term incentive mechanism, attract and retain outstanding talents, and combine the interests of shareholders, the company and the core teams.

According to the scheme, Chairman Zhou Zixue, Vice Chairman Jiang Shangyi, Co-CEO Zhao Haijun and Liang Mengsong and Secretary-General Gao Yonggang were awarded 400,000 shares. The core technician Zhang Xin was awarded 320,000 shares.

SEE ALSO: SMIC Executive Departs Company

It is worth noting that Wu Jingang, a core technician who resigned from his position on July 4, lost his 160,000 restricted shares.

About a week ago, Tencent planned to give a total of 2,403,203 shares of stock as awards to no less than 3,300 employees, for a total of 1.121 billion yuan ($173 million). On average, each employee would be awarded 340,000 yuan ($52,393), less than SMIC’s award.

JD.COM, another Internet giant, announced it would increase the average annual salary of its employees, up from 14-month salary to 16-month salary, within the next two years.