Melco International Development said it was replacing its previously granted share options as the collapse in the group’s share options means that the previous awards were no longer able to act as an incentive.
The exercise price of the previous options was between HK$10.24 to HK$23.15 a share, compared with the current share price of $7.10. The new awards bring the options more in line with the current share price, Melco said in a filing with the Hong Kong Stock Exchange.
The company has issued 933,000 new options with a strike price of $7.278. They are valid for a period of 10 years from April 6th. None of the options have been awarded to senior executives or shareholders in the group. It has also issued 453,000 replacement share options at the same exercise price.
The new options can be converted in three equal tranches on April 6th, 2023, 2024 and 2025. The replacement options can be vested in two tranches in 2024 and 2025.