China Yuchai Launches Equity Incentive Plan to Reward and Retain Key Talent

China Yuchai International, a 48.7%-owned subsidiary of Singapore-listed Hong Leong Asia and listed on the New York Stock Exchange, has announced the implementation of an equity incentive plan aimed at strengthening talent retention and employee engagement across the organisation.

Approved during China Yuchai’s Annual General Meeting on 8 July, the plan comprises 1.8 million ordinary shares priced at 10 US cents (approximately 13 Singapore cents) each. The total share pool represents 4.58% of the company’s enlarged share capital and falls under the classification of a share scheme in accordance with Rule 843 of the Singapore Exchange’s listing manual.

The equity incentive plan is designed to foster long-term dedication and loyalty among employees, particularly those holding positions of significant responsibility. The company noted that the scheme is intended to reward, retain and motivate employees whose contributions are deemed vital to the ongoing success of the group.

Eligible employees may receive one or more of the following award types: share options, restricted stock, or stock payments. The plan will be overseen by China Yuchai’s compensation committee, which will determine the award recipients, the timing and volume of awards, and all associated terms and conditions.

Individual awards are capped at a maximum of 300,000 shares per employee per calendar year. The plan is scheduled to conclude on 16 May 2035, ten years from the date of board adoption.

The exercise price of any option granted under the plan will not be set below the fair market value of China Yuchai’s shares on the date of grant, nor below the par value of 10 US cents per share. The purchase price of restricted stock and stock payments will be determined at the discretion of the compensation committee.

As of 9.57am Singapore time, Hong Leong Asia shares were trading unchanged at $1.63. China Yuchai shares closed 5 US cents higher, or 0.21% up, at US$24.36 on the NYSE on 8 July.

-The Edge

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