Introduction: On May 20, SMIC announced the launch of an incentive plan to distribute stock incentives worth about 4.1 billion to 4,000 employees, which is about 660,000 yuan per person after discounting.

660,000 per capita!  23% of SMIC employees received stock incentive “red envelopes”

Figure: List of Stock Incentive Objects (Part)

On May 20, SMIC issued an announcement saying that the company’s board of directors reviewed and approved the “2021 Science and Technology Innovation Board Restricted Stock Incentive Plan (Draft)” and related proposals, and announced a list of some incentive objects, including Zhou Zixue, Jiang Shangyi, Executives and core technicians including Zhao Haijun, Liang Mengsong and Gao Yonggang are listed.

Among them, two directors, Jiang Shangyi and Liang Mengsong, were awarded 400,000 restricted stock incentives.

According to this stock incentive plan, the total amount of restricted stocks to be granted shall not exceed 75.6504 million shares, accounting for approximately 0.96% of the total share capital. According to the closing price of SMIC’s A shares on May 19, this part of the stock is worth 4.145 billion yuan. After deducting the cost of 20 yuan per share, the difference is about 2.632 billion yuan.

Therefore, based on the price difference of 2.632 billion yuan and 4,000 incentive objects, each person can get a “price difference” of 658,000 yuan, of which the actual incentives obtained by each of the five directors are between 12 million yuan and 14 million yuan. Other core management , The “red envelopes” that technical talents are expected to receive can reach the level of one million.

It should be noted that this stock incentive plan is granted to a wide range of targets. Calculated on the basis of 4,000 people, it accounts for about 23.05% of the total number of 17,354 employees of SMIC at the end of 2020.

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.


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