SMIC Bonus
Last month we noted that China’s largest foundry, SMIC (688981.CH), had given its CEO, a former R&D Director at Taiwan Semiconductor (TSM) a bit of a raise, more than quadrupling his salary from 2019’s $341,000 to $1.53m, along with a ‘gift’ of $3.4m in SMIC stock, making him the company’s highest paid employee. This was in keeping with the company’s and the country’s desire to not only hire foreign talent with high salaries, but to provide ‘incentives’ to make sure other potential hires note that such bonuses are available. SMIC is taking that philosophy a bit further with the approval of an incentive plan that will offer ~23% of its employees (~4,000) shares in a restricted stock offering as a reward for service.
The plan share price is set at 20 yuan ($3.11 US), a roughly 36% discount to the current average price of the trading shares and includes grants of 400,000 shares each to the company’s Chairman, CEO, and two top executives (one previously mentioned). The company has a tendency to give the highest employee awards to those that were hired from firms off the Mainland, particularly Taiwan, where recruitment agencies have been told to remove all listings for jobs on Mainland China, particularly those in the semiconductor space.
The plan share price is set at 20 yuan ($3.11 US), a roughly 36% discount to the current average price of the trading shares and includes grants of 400,000 shares each to the company’s Chairman, CEO, and two top executives (one previously mentioned). The company has a tendency to give the highest employee awards to those that were hired from firms off the Mainland, particularly Taiwan, where recruitment agencies have been told to remove all listings for jobs on Mainland China, particularly those in the semiconductor space.
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