Bilibili: Grant of Restricted Share Units – Form 6-K
Video streaming and online entertainment platform Bilibili has announced the grant of restricted share units (RSUs) to certain eligible employees. The company’s Compensation Committee has determined that no additional performance targets or clawback mechanisms are necessary for these grants. The purpose of the grants is to increase employee loyalty and incentivize them to work towards enhancing the company’s value and its shares.
The RSUs will be fulfilled using Class Z Ordinary Shares, which have been reserved for future issuance under the company’s share incentive plans. These grants will not exceed 1% of the total shares in issue for individual grantees, and 0.1% for each related entity participant or service provider grantee in the 12-month period leading up to the grants.
Approval from the company’s shareholders is not required for these grants, and none of the grantees hold positions as directors, chief executives, substantial shareholders, or associates of the company.
The purpose of these grants is twofold: to promote the success and increase the value of the company by aligning the interests of employees with those of shareholders, and to attract and retain talented individuals whose contributions are critical to the company’s operations.
Under the 2018 Share Incentive Plan, a maximum aggregate of 30,673,710 Class Z Ordinary Shares can be issued, which represents 10% of the total issued Class Z Ordinary Shares as of October 3, 2022. After the grants, the company may further issue awards totaling 22,555,601 Class Z Ordinary Shares under the plan.
It is worth noting that the 2018 Share Incentive Plan was adopted before the new Chapter 17 of the Listing Rules came into effect. The company will comply with the new rules as required by the transitional arrangements for existing share schemes.
By granting restricted share units, Bilibili aims to incentivize its employees, align their interests with those of shareholders, and promote the success of the company. With these grants, Bilibili hopes to maintain and enhance its position in the highly competitive online entertainment market.
