Monday, July 22, 2013

ZTE to Grant Stock Options to Employees

ZTE announced plans to award stock options to more than 1,500 employees in the company’s first stock-option incentive program since 2007.

The company will award stock options for 103.2 million ZTE shares, equivalent to 3% of the company’s share capital, to 1,531 holders. The stock options will have a validity period of five years, comprising of a two-year waiting period, and a three-year exercise period. Those eligible for the program include ZTE directors, senior management, and employees involved in core businesses.  A total of 5.35 million stock options will be granted to 18 directors and executives holding senior management roles, while 97.85 million options will be awarded to core business employees.

“The stock option scheme is a mechanism for correlating employee remuneration with the company’s financial performance and long-term strategic objectives,” said Mr. Hou Weigui, Chairman of ZTE Corp. “The scheme will help the company foster a culture of value creation, and align the interests of shareholders with senior management and core employees. It will enable the company to effectively deploy our human resources, and optimize our employee compensation structure and competitiveness, laying the foundation for the continuing sustainable development of ZTE in the long term.”