SMIC’s stock incentive plan for 2021 is out, distributed shares worth 4.1 billion yuan to employees

SMIC disclosed the announcement of the resolutions of the board of directors, and the board of directors reviewed and approved the “2021 Sci-tech Innovation Board Restricted Stock Incentive Plan (Draft)” and related proposals.

The source of the underlying stocks involved in the first grant of restricted stocks in this incentive plan is SMIC’s directional issuance of A-shares of the company’s Shanghai Stock Exchange Sci-tech Innovation Board to the incentive targets; the total number of restricted stocks to be granted does not exceed 75,650,400 shares.

Approximately 0.96% of the company’s total share capital of approximately 7.9 billion shares on the date of the announcement of the draft incentive plan, the first grant price of partially restricted shares is 20 yuan per share.

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Among them, the number of initial grants does not exceed 68,085,200 shares, accounting for about 0.86% of the total equity, accounting for about 90% of the total equity of the grant; 7.565,200 shares are reserved, accounting for about 0.1% of the total share capital, and the reserved part accounts for about the capital 10% of the total equity of the second grant.

No more than 4,000 people were granted incentives for restricted stocks for the first time, accounting for approximately 23.05% of the 17,354 employees of SMIC at the end of 2020. Specifically include directors, senior managers, core technical personnel, middle and senior business managers, and technical and business backbone personnel.

SMIC believes that the implementation of this incentive plan will stabilize the core team and realize the deep binding of the interests of employees and shareholders.

Incentive objects that meet the conditions for granting the incentive plan, after meeting the corresponding attribution conditions, will receive the company’s privately issued A-share ordinary shares in stages at the grant price.

It is reported that the initial grant price of some restricted stocks is 20 yuan per share, that is, after the grant conditions and vesting conditions are met, the incentive objects can purchase privately-issued shares at a price of 20 yuan per share.

Based on the closing price on May 19, the planned grant of 75.654 million shares is worth 4.145 billion yuan. After deducting the cost of RMB 20 per share, the difference is approximately RMB 2.632 billion. For example, if the total price difference is 2.632 billion yuan and the incentive target is 4,000 people, each person can get a “spread” of 658,000 yuan.