CATL Grants "Half-price" Restricted Stock Incentives to Its Key Employees

CATL has launched a restricted stock incentive plan for five consecutive years.

According to Chinese lithium battery industry media reports, on the evening of July 21, CATL released the 2022 stock option and restricted stock incentive plan. The incentive plan intends to grant a total of 5.1341 million shares/10,000 shares to the incentive objects, and a total of 4,688 incentive objects are granted for the first time.

The exercise price of the stock options granted to the incentive object in this incentive plan is 526.46 CNY/share, and the grant price of the restricted stock granted to the incentive object is 263.23 CNY/share.

In the restricted stock incentive plan, in addition to the personnel listed separately in the draft, other 4,538 middle-level managers and key employees have been granted a total of 2.4399 million restricted shares.

Calculated based on the closing price of CATL on July 22 of 532 CNY per share, among the above 4,538 employees, the average value of restricted stocks granted to each middle-level management and key employees was 286,000 CNY, and the floating profit was 144,800 CNY.

According to the performance assessment objectives of vesting and vesting in five phases, if each exercise period and vesting period of CATL reaches the performance assessment target, the operating income from 2022 to 2027 should not be less than 230 billion CNY, 280 billion CNY, 340 billion CNY, 410 billion CNY, 490 billion CNY, and 590 billion CNY, respectively.

Based on this calculation, the year-on-year growth rate of CATL’s operating revenue in 2022 will need to reach 76.44%, but the year-on-year growth rate of revenue from 2023 to 2026 will only need to reach about 20%.

A total of 4,688 incentive objects were awarded for the first time.

The incentive plan intends to grant a total of 5.1341 million shares/10,000 shares to the incentive objects, accounting for about 0.21% of the total share capital of CATL. Among them, 4,278,400 shares/10,000 shares were granted for the first time, and 855,700 shares/10,000 shares were reserved.

Based on the closing price of CATL on July 22 of 532 CNY per share, the incentive plan intends to grant a market value of 2.731 billion CNY of stock equity to the incentive objects.

A total of 4,688 incentive objects were granted to this incentive plan for the first time, including directors, senior managers, mid-level managers and key employees (including foreign employees) who served in CATL.

At the end of 2021, CATL had a total of 83,601 employees. Based on this calculation, the incentive objects granted by this incentive plan for the first time accounted for 5.61% of the number of incumbent employees.

Incentive plans are divided into stock option incentives and restricted stock incentives.

According to the announcement, CATL intends to grant 1,962,800 stock options to incentive objects, with a total of 166 incentive objects. The exercise price of the stock options granted to the incentive objects under this incentive plan is 526.46 CNY per share.

The number of stock options granted to JIA ZHOU, the director and general manager of CATL, was 263,500, accounting for 13.4236% of the total number of stock options granted under the plan. Director and Deputy General Manager, Wu Kai was granted 92,900 stock options, middle-level management WUQUAN QIAN was granted 4,400 stock options, and 163 other middle-level managers were granted a total of 1,274,900 stock options.

In addition, CATL intends to grant 3,171,300 restricted shares to incentive objects, with a total of 4,555 incentive objects. The grant price of the restricted shares granted to the incentive object is 263.23 CNY per share.

Tan Libin, Deputy General Manager of CATL, was granted the largest number of restricted shares, 53,100 shares, accounting for 1.67% of the total number of restricted shares granted in this plan. The second is Junwei Chen, a middle-level manager, who was granted 42,700 restricted shares.

In addition, Director and Deputy General Manager Wu Kai was granted 19,900 restricted shares in addition to stock options.

It is worth noting that there are also many managers and key talents who are working out of China or non-Chinese nationalities have been granted stock and option incentives this time, which shows the broad mind and determination of CATL to become a large international enterprise.

At present, CATL is actively promoting its internationalization process. With its down-to-earth and flexible characteristics, it seeks truth from facts, respects the market reality of various countries, understands the differences in cultures of various countries, and strives to build an inclusive and diverse cross-cultural organization.

Resources: Frontier of Lithium Battery

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