On September 14, 2022 HUTCHMED (China) Limited ("HUTCHMED") (Nasdaq/AIM: HCM; HKEX: 13) reported that on September 13, 2022, it granted share options under the Share Option Scheme adopted by HUTCHMED in 2015 (the "Share Option Scheme") and conditional awards ("LTIP Awards") under the Long Term Incentive Plan adopted by HUTCHMED in 2015 ("LTIP") (Press release, Hutchison China MediTech, SEP 14, 2022, View Source [SID1234619544]).
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Aimed at attracting and retaining top talent, the Remuneration Committee of HUTCHMED appointed an independent advisor to conduct a compensation benchmarking research on selected peer group companies. The Remuneration Committee comprehensively reviewed the compensation and share-based incentives policies of HUTCHMED and its subsidiaries (the "Group") and established an attractive policy to ensure the Group is able to recruit and retain top talent. Vesting of share-based awards under the policy is in line with that peer group.
HUTCHMED granted share options under its Share Option Scheme to three employees to subscribe for a total of 1,750,000 ordinary shares with par value US$0.10 each in the share capital of the Company ("Ordinary Shares") represented by 350,000 American Depositary Shares ("ADSs") (each equivalent to five Ordinary Shares) subject to the acceptance of the grantee. Details of such share options granted are as follows:
Date of grant : September 13, 2022
Exercise price of share options granted : US$13.14 per ADS (equivalent to HK$20.50 per Ordinary Share at the conversion rate HK$7.8=US$1) (such exercise price has been determined by reference to the price of the Ordinary Shares on The Stock Exchange of Hong Kong Limited ("HKEX"))
Number of share options granted : 1,750,000 represented by 350,000 ADSs (five share options shall entitle the holder thereof to subscribe for one ADS)
Closing market price of Ordinary Shares at HKEX on the date of grant : US$13.14 per ADS (equivalent to HK$20.50 per Ordinary Share at the conversion rate HK$7.8=US$1)
Validity period of the share options : From September 13, 2022 to September 12, 2032
Vesting period of the share options : The share options will vest at 25% on each of the first, second, third and fourth anniversaries of the date of grant of the share options.
At the same time, HUTCHMED also granted two employees of the Group with non-performance based LTIP Awards and 135 employees of the Group with performance-based LTIP Awards.