Ecopro Grants RSUs for the First Time to All Employees, Including Those at Unlisted Subsidiaries

As of September 2022, 2,706 Employees
Encouraging Long-Term Service and Increasing Belonging
Fostering Pride Through Fair Performance Distribution

EcoPro Group announced on the 1st that it will provide Restricted Stock Units (RSU) for the first time to share the company's growth achievements with all employees. Through this, the company plans to encourage long-term service and further strengthen a sense of belonging among its employees.

EcoPro Headquarters in Cheongju, Chungbuk [Photo by EcoPro]

The recipients are a total of 2,706 employees who were employed as of September 2022, and the total number of shares to be granted amounts to 254,913. Half of these will be granted next month, and the remaining half in October next year. The number of shares granted was set at about 15-20% of the annual salary at that time, comprehensively considering rank, years of service, and salary.

Unlike stock options, which gain the difference between the stock price and the exercise price, RSUs transfer the company's treasury shares free of charge. While stock options involve acquiring shares at a pre-agreed exercise price and then selling them at market price, RSUs are distributed annually or granted in a lump sum after several years.

Listed companies grant listed shares to their employees, while unlisted companies grant shares of their listed parent companies. As an unlisted company, EcoPro EM will receive shares of its listed parent company, EcoPro BM, as RSUs. This is expected to contribute to boosting morale across the entire group by granting RSUs not only to employees of listed companies but also to those of unlisted affiliates.

RSU Allocation by Position at EcoPro Group [Image Source=EcoPro Group]

EcoPro Group decided to grant RSUs in November 2022 and signed compensation contracts with employees in February last year. At that time, Lee Dong-chae, former chairman of EcoPro, said, "The driving force behind the rapid growth, which can be called a quantum leap, was the dedication and passion of the employees," adding, "I hope all employees have a sense of ownership and grow together with the company."

EcoPro Group expects that this RSU grant will naturally encourage long-term service and motivate employees to achieve. A company official said, "Since the performance is shared fairly, employees' pride in the company can increase," and added, "The RSU grant will be a great help in overcoming the electric vehicle chasm (temporary demand stagnation)."