Hutchmed launches new long-term incentive plan

Published 14/03/2025, 10:32
Hutchmed launches new long-term incentive plan

HONG KONG - Hutchmed (China) Limited (Nasdaq/AIM:HCM; HKEX:13), a biopharmaceutical company focused on cancer and immunological diseases, announced the adoption of its 2025 Long Term Incentive Plan (LTIP), set to commence on April 24, 2025. The plan aims to attract and retain skilled personnel by offering them the opportunity to receive equity interests in the company.

The 2025 LTIP will replace the current incentive plan, which is due to expire on its tenth anniversary, and will run for a similar duration unless terminated earlier. The Board of Directors approved the new scheme on Monday, with the intent to motivate employees towards the company’s future development and expansion.

Under the 2025 LTIP, awards in the form of contingent rights to receive shares or cash payments can be granted to Directors, subsidiary directors, and employees who have or are expected to contribute significantly to Hutchmed. These awards will be satisfied by existing shares purchased on-market by a trustee, rather than through the issuance of new shares or options, thus not requiring shareholder approval under the Listing Rules.

The LTIP is designed with a scheme mandate limit, initially set at 5% of the company’s issued shares on the adoption date. This limit can be renewed with Board approval, and the total number of shares underlying the awards granted post-renewal cannot exceed 5% of the shares in issue at the new approval date.

Awards will vest on predetermined dates, subject to performance or other conditions. If these conditions are not met, the awards will be automatically cancelled. Grantees have no rights to voting, dividends, or distributions for shares underlying the awards until the shares are transferred to them.

The announcement clarifies that the adoption of the 2025 LTIP does not require general meeting approval by shareholders and will comply with disclosure requirements under the Listing Rules. This move by Hutchmed is based on a press release statement and aims to align the interests of the employees with those of the company and its shareholders.

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