BYD Excites Investors with Generous Compensation Package
The Chinese electric car manufacturer BYD has recently announced an exceptionally generous compensation package for its shareholders, which includes bonus shares, capital shares, and a cash dividend. These measures have generated great enthusiasm among investors, raising the stock price in Hong Kong by 3.9% to HKD 390.40.
Details of the Compensation Package
- Bonus Shares: For every ten BYD shares held, eight bonus shares will be issued. These additional shares serve to strengthen investor loyalty and provide shareholders with a significant increase in their shareholding.
- Capital Shares: In addition to the bonus shares, twelve capital shares will be issued for every ten shares held. These new shares come from the company’s capital reserves and will be distributed free of charge to existing shareholders.
- Cash Dividend: Alongside the shares, a cash dividend of approximately $5.49 per ten shares will be paid. This payment is part of the comprehensive compensation package that BYD offers its shareholders.
Impact on the Company and Shareholders
- Increase in Share Count: Through the issuance of bonus and capital shares, the total number of outstanding BYD shares will increase from currently about 3.039 billion to over 9.117 billion. This represents an increase of more than six billion shares.
- Market Reaction: The announcement of the compensation package was received very positively by investors, which is reflected in the rise of the stock price. This underscores BYD’s attractiveness to investors and the company’s long-term orientation.
- Strategic Significance: The measures serve to strategically strengthen equity and bind shareholders. BYD is thereby positioning itself as an attractive partner for investors, highlighting its long-term focus on growth and stability.
The decision regarding the compensation package will be made at a general meeting in June, meaning that the final implementation still depends on the approval of the shareholders.