On the evening of July 10, Tencent holdings announced in the Hong Kong stock exchange that it would issue 26.64 million new shares in accordance with the share award scheme, and planned to grant no less than 29700 people to be rewarded.Based on the subscription standard of HK $532.81 per share, Tencent may spend HK $14.2 billion on this equity incentive plan.
Under the scheme, each person will receive about 897 shares. Tencent's share price was HK $546.5 as of July 10. At this closing price, the market value of the shares awarded per capita is about HK $490200 (equivalent to about RMB 440000).
Tencent announced that the purpose of the issue is to reward the contributions made by the rewarders and to attract and retain the talent needed for the group's continued operation and development.
According to the Tencent equity incentive plan, the eligible participants include any employees, experts, consultants and agents of Tencent group member companies, investment entities and business partners, including executives, officers and directors.
The incentive shares will be purchased by an independent trustee at the expense of Tencent. The number of shares awarded to each person is determined by their position, experience and performance. After the new shares are distributed, the independent trustee shall hold the new shares in trust as a reward person and transfer the shares to the reward person free of charge if the relevant attribution conditions stipulated by the board of directors at the time of the award are met.
According to Tencent's latest quarterly financial report data, as of the end of the first quarter of 2020, the number of Tencent employees was 64238, and the total compensation cost in the first quarter was RMB 15.143 billion, that is, the average salary per employee of Tencent in the first quarter was about 230000, with an average monthly salary of nearly 80000.
Tencent also had two large-scale equity incentives in 2019. On December 2,2019, Tencent Holdings announced that on December 2,2019,52700 shares on December 2,2019 to subscribe for shares, at HK $335.84 per share. On July 8,2019, Tencent awarded 34.18 million shares to 23271 people, with a total market value of about HK $12 billion and a per capita reward of about HK $500,000.