Hong Leong Asia unit introduces share options to incentivise staff

[SINGAPORE] Hong Leong Asia on Tuesday (Jul 8) announced that its subsidiary, China Yuchai International (CYI), will be implementing an equity incentive plan totalling 1.8 million shares of US$0.10 each in the capital of CYI shares.

This is around 4.6 per cent of the enlarged share capital of the unit.

The initiative is to create opportunities for directors and employees of CYI and its subsidiaries to participate in its equity. The equity types proposed by the plan include options, restricted stock and stock payments.

The group said that the maximum aggregate number of CYI shares which may be granted to any one person during any calendar year shall be 300,000.

An option holder will not have any rights as a shareholder, until shares of CYI have been issued.

The period for an option shall be determined by the compensation committee, subject to a maximum of 10 years from the date such option is granted. Other limitations may also apply upon the termination of an option holder’s employment or service.

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Headquartered in Singapore, CYI is an investment holding company listed on the New York Stock Exchange. The principal operating subsidiary of CYI, Guangxi Yuchai Machinery Company, is based in Yulin, Guangxi Zhuang Autonomous Region in China. It is one of the largest powertrain solutions manufacturers in the country.  

Hong Leong Asia has a 48.7 per cent stake in CYI.

The counter closed 1.2 per cent or S$0.02 higher at S$1.63 on Tuesday.