In a move to expand its employee incentive program, New Oriental Education & Technology Group Inc. (NYSE:EDU / 9901.SEHK) has announced an amendment to its 2016 Share Incentive Plan. Today, the company's board of directors, following the compensation committee's recommendation, approved an increase in the maximum aggregate number of common shares available for grants under the plan from 100 million to 200 million shares. Additionally, the duration of the plan has been extended by five years, now set to expire in 15 years from its inception.
The amendment, effective immediately, aims to bolster New Oriental's ability to attract and retain talent by offering additional equity incentives. This enhancement to the incentive program comes without any other substantive changes to the terms of the Plan, which was originally adopted in January 2016.
New Oriental, a leading provider of private educational services in China, has been focusing on its growth strategy and the alignment of its employees' interests with those of its shareholders. The expansion of the share incentive pool reflects the company's commitment to fostering a motivated workforce as a key component of its long-term success.
The information regarding the amendment is based on a report filed with the Securities and Exchange Commission. Stephen Zhihui Yang, Executive President and Chief Financial Officer of New Oriental, signed the report, affirming the company's compliance with the requirements of the Securities Exchange Act of 1934. Investors seeking detailed analysis can access comprehensive financial metrics and 15 additional ProTips through InvestingPro's exclusive research report.
In other recent news, New Oriental Education & Technology Group Inc. faced a series of downgrades from major analyst firms. Citi analysts downgraded the company's stock rating from Buy to Neutral, lowering the price target to $50. Similarly, JPMorgan, Morgan Stanley (NYSE:MS), and Macquarie downgraded the stock due to concerns over the company's guidance misses and estimate reductions.
Despite the downgrades, the company reported a revenue rise of 19.4% year-over-year to $1.04 billion in the fiscal second quarter, slightly surpassing the expected $1.03 billion. However, its adjusted earnings per American depositary share fell short of the consensus estimate of $0.32, reporting $0.22 instead.
These are recent developments, and it's important for investors to keep an eye on future announcements from the company and its analysts. BofA Securities and Jefferies have adjusted their financial outlook for New Oriental Education, reducing the stock's price target while maintaining a Buy rating.
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