NeoPhotonics Corp of San Jose, CA, USA (a vertically integrated designer and manufacturer of hybrid photonic integrated optoelectronic modules and subsystems for high-speed communications networks) says that the compensation committee of its board of directors has granted inducement awards to Yang Chiah Yee in connection with his employment as senior VP of global sales.
Under NeoPhotonics’ 2011 Inducement Award Plan, on 22 March the committee granted Yee an option as an inducement award to purchase 83,200 shares of common stock, with a per-share exercise price equal to $6.51 (its closing price on the NYSE on the grant date). This option will vest over four years, with 25% of the underlying shares vesting on the one-year anniversary of Yee’s start date and an additional 1/48th of the underlying shares vesting monthly thereafter, subject to his continuous service through each vesting date.
The committee also granted Yee a restricted stock unit (RSU) award to purchase 99,800 shares of common stock. The RSU will vest over four years, with 25% of the shares vesting on the one-year anniversary of his start date and 1/4th of the underlying shares vesting on each anniversary thereafter, subject to Yee’s continued service.
The committee granted these awards as a material inducement to Yee’s employment in accordance with NYSE Rule 303A.08.
The board approved the 2011 Inducement Award Plan based on the employment inducement exemption provided under the NYSE listing standards. As a result, the plan did not require shareholder approval.