The plan, which was approved at China Yuchai’s annual general meeting (AGM) on July 8, is to incentivise the company’s employees to remain “dedicated and loyal” to the group. The plan is also meant to “reward, retain and motivate” the employees in “positions of substantial responsibility” and whose contributions are key to the group’s business.
Under the plan, employees may receive three types of awards: options, restricted stock or stock payments.
The plan will be administered by China Yuchai’s compensation committee, who will be able to select participants, determine when the shares will be awarded, number of share awards, number of shares covered under each award, as well as the terms and conditions.
Each employee under this plan will be able to receive a maximum of 300,000 shares during any calendar year.
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The plan will end on May 16, 2035, 10 years after the plan was adopted by the board.
The option price will not be lower than the fair market value of China Yuchai’s shares on the date the option is granted. It should also not be lower than the par value of 10 US cents per share.
The purchase price of restricted stocks as well as stock payments will be determined by the compensation committee.
As at 9.57am, shares in Hong Leong Asia are trading flat at $1.63. Shares in China Yuchai closed 5 US cents higher or 0.21% up at US$24.36 on the NYSE on July 8.
