China Evergrande Grants 8,000 Employees 700 Million+ Share Options in Its Biggest Offer To Date

China Evergrande Grants 8,000 Employees 700 Million+ Share Options in Its Biggest Offer To Date

Zhang Xia

Date: Mon, 10/09/2017 - 10:12 / Keywords: China Evergrande Group
China Evergrande Grants 8,000 Employees 700 Million+ Share Options in Its Biggest Offer  To Date
China Evergrande Grants 8,000 Employees 700 Million+ Share Options in Its Biggest Offer To Date

(Yicai Global) Oct. 9 -- China Evergrande Group [HK:3333] has granted over 743 million share options to 7,994 senior- and mid-level managers under an unprecedented share option scheme to further incentivize its executives to contribute to its development.

 The move aims to spur executives into actively contributing to the firm's continuing growth by better aligning the interests of shareholders, the company and management and let the latter share in the fruits of its growth, Evergrande said.

 By granting  executives these options, Evergrande integrates prompts them to strive to maximize corporate interests and unleash their maximum potential. Options closely relate to share prices, so they depends on the former, which may rise only when a company fares well. This latest share option scheme thus highlights Evergrande's confidence in its share prices, cs.com.cn reported.

 As the industry grows increasingly competitive, stock options have become a key means for property developers to incentivize employees to sustain earnings growth. More than 800 listed companies have instituted stock option plans in the past two years, but Evergrande's is the biggest in the real estate sector in both share options and grantee numbers.

 Evergrande's share price has risen more than 500 percent from HKD5 at the start of the year to over HKD30 now, with a market value of HKD390 billion (USD50 billion). More than 10 international investment banks, including Citibank Inc. [NYSE:C], Merrill Lynch & Co., Nomura Holdings Inc. [TYO:8604] and Haitong Securities Co. [SHA:600837; HK:6837] have lately given a buy or strong buy rating on the stock and raised their target price for the firm.

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Keywords: China Evergrande Group