Suning Appliance has launched a share bonus plan for 2008, which says the company will give 43.76 million stock options, accounting for 2.93% of its total shares, to its senior executives as incentives.
According to the appliance retailer, the vesting period for this plan is five years and staff who will be rewarded include directors, excluding non-executive directors and independent directors, senior executives, key staff, staff who are nominated by the president, and people who have made special contributions to the company.
A total of 40.76 million stock options will enable the holders to buy shares at an exercise price of CNY58, while the rest will be allocated to staff nominated by the chairman and who have special contributions. A detailed arrangement shows that 13 directors, senior executives and key staff will gain 24.9 million options, accounting for 56.9% of the total bonus; and the other 42 management staff from some management centers and the purchase center of Suning's headquarters will gain 15.86 options, accounting for 36.24% of the total bonus.
Ren Jun, secretary of the board of directors, told local media that the share bonus plan has to be approved by China Securities Regulatory Commission and at the company's general meeting of shareholders before being put into effect.
He said that for a company in the retail sector, attracting and holding talents and encouraging executives that have strategic importance in raising the competitive strength of the company is important. As a listed company, Suning has the ability to implement stock option incentives, which will bring benefits for the shareholders, the company and the management team as well.