(Corrects to say award was worth $891 million in 2nd paragraph,
Liu's compensation equivalent to half of shares in IPO in 5th
By Elzio Barreto and Denny Thomas
HONG KONG May 22 China's No.2 e-commerce
company, JD.com Inc., awarded CEO and founder Richard Liu
a one-off share-based bonus of $591 million as the company
prepared for its U.S. IPO, according to a securities filing.
The award was actually worth $891 million at the IPO price,
nearly half the amount JD.com and some of its shareholders
raised in the biggest U.S. listing by a Chinese company.
It was granted "in consideration of his past and future
services", according to the prospectus.
JD.com is the second mainland company to lavish its senior
executives with major share-based bonuses ahead of a stock
market flotation in the past month.
The deal was priced at $19 per American Depositary Share
(ADS), above the $16 to $18 per share marketing range for the
IPO. Each ADS represents two ordinary shares.
Billionaire Liu was awarded 93.78 million immediately
vesting restricted share units, equivalent to half the number of
ADSs in the JD.com IPO.
The company itself offered about 69 million ADSs while
shareholders, including hedge fund Tiger Global Management and
Russian Internet investment group Digital Sky Technologies, sold
another 24.68 million ADSs.
The JD.com special compensation follows a similar payment to
two senior executives of China's biggest pork producer WH Group
Ltd, who last month received a combined $600 million
share-based compensation for "recognition and reward" as part of
the takeover of U.S.-based Smithfield Foods Inc.
(Editing by Stephen Coates)