Chapter 718 Equity Incentive Plan

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Of course, the political and economic situation in Colombia is more chaotic than in India, but there is a reason why Pacific Energy has invested in the construction of a longer gas pipeline than India.

Although the 'third brother' often forgets who he is after drinking a glass of Ganges water, India is indeed a big country, not a country that can be easily shaken by a business or family. But Colombia is different. If Guo Shouyun is willing, it is not impossible to use the dark arrow in his hand to subvert the political situation in Colombia. So he's not worried about someone making trouble for him here. And even if he encounters trouble, he can be brought back by both soft and hard means.

"In the field of natural gas distribution and retail, Huaxia as the focus of development, in addition to 03 years signed a cooperation agreement with Yangcheng Natural Gas Company, we have signed cooperation agreements with Hangzhou Gas Group, Jinling Gas Pipeline Company and other 17 first- and second-tier cities in central and eastern China, the two sides to form a joint venture, each accounting for 50% of the shares, and Unocal to provide natural gas sources. ”

"In Japan, we have signed a cooperation agreement with Toho, one of Japan's three largest natural gas distribution companies, to jointly develop the Japanese natural gas distribution market. ”

"In Southeast Asia, except for the Philippines, the rest of the countries, except for Singapore, have no room for us to enter, and the natural gas industry policies of the rest of the countries are not perfect, whether it is cooperation or acquisition, the progress is very slow. At present, except for the acquisition of a distribution company in Indonesia, there is not much to gain. ”

Guo Shouyun was not surprised by this situation. In the seventies and eighties of the last century, the price of natural gas was controlled by all countries in the world, and the degree of marketization was not high. Later, with the increasing use of natural gas, Europe and the United States began to gradually marketize, and natural gas trading was gradually separated from the accessories of oil trading and became a separate market, and the global commodity trading website is currently the largest natural gas trading website in the United States and the largest in the world.

In addition, compared to Europe and the United States, Asia, including Japan, which is the most economically developed country, has a relatively low degree of marketization of natural gas. Even in many countries, natural gas is still a regulated energy source, so it will take time for Pacific Energy to make a difference in the Asian natural gas distribution market.

"In the third quarter of 2004, Pacific Energy achieved a total revenue of US$5.248 billion and a net profit of US$6.47 from the fields of natural gas pipeline transportation, construction and natural gas distribution, with a return on net assets of 12.48%, 17 percentage points higher than that of the same industry. ”

After Guo Shouyun listened, he pondered for a moment.

"Based on Pacific Energy's current assets, net assets, total revenue, net profit and return on equity, what is our approximate market capitalization?"

"The price-to-earnings ratio of the electric and natural gas integrated utilities on the NYSE is generally around 18, and in the first three quarters of 2004, the total profit was $4.13 billion, and with the addition of Scottish Power, the net income in the fourth quarter should reach $1.8 billion, which means that for the whole of 2004, we can get a net profit of $5.93 billion. Using the most common valuation method of multiplying net profit by price-to-earnings ratio, the estimated market capitalization of our Pacific Energy Group was $106.74 billion at the end of 2004. ”

“… But because our debt ratio is too high, and nearly half of our investments are in politically risky developing countries, the market will lower its expectations. This can be seen from the fact that Moody's only gives us an investment rating of A for the bonds issued. Therefore, if it is listed, the most likely market value of Pacific Energy Group will be between 850~90 billion US dollars. ”

Jonathan Weil looked at the big boss with some surprise, because he had known for a long time that the company would not go public. And the annual asset appraisal is far from the beginning.

"How many employees does Pacific Energy have now?"

"Excluding joint ventures, we have 56,700 permanent employees in 47 countries around the world. ”

Guo Shouyun nodded and said with a smile: "Jonathan, I want to launch an equity incentive plan for Pacific Energy's internal employees next year. ”

"Equity incentives?"

Pacific Energy Group has a market capitalization of $85 billion, a total share capital of $2 billion, and a class B share of 500 million, which are freely subscribed by all employees. In order to benefit everyone as much as possible, in principle, ordinary employees may not subscribe for more than 5,000 shares, middle managers may not subscribe for more than 50,000 shares, and senior managers may not subscribe for more than 500,000 shares. After the first subscription, the remaining part is freely subscribed within the company. ”

In addition, the company's equity transactions and market capitalization assessments will be entrusted to Phoenix Bank, and the financial audit will be entrusted to PricewaterhouseCoopers. Phoenix Bank publishes an assessment of the company's market value once a quarter, and if an employee wants to sell their shares, it will be recovered by Pacific Energy based on Phoenix's assessed market value. ”

"Jonathan, what do you think of this plan?" Guo Shouyun smiled.

All employees of Pacific Energy Group will truly become a whole, and everyone will work hard for the future development of the company!"

Although it is a Class B share with no voting rights and only the right to dividends, the value of the stock is no different from that of Class A shares. If the company develops well and the market value increases, the Class B shares held can also be sold at a higher price.

"BOSS, each region has a different degree of economic development and acceptance of equity. Pacific Energy's 56,700 employees are probably not very out of their own pockets to buy our stock. ”

"We can't force this kind of thing, let them be free!"

Jonathan Weil nodded, "If it's an ordinary employee, we don't have to care. But if it's a core employee, we can't really let it go. Otherwise, under the comparison of interests, it is easy to cause internal divisions and the departure of excellent employees. ”

Guo Shouyun thought about it for a while, and nodded in agreement.

Put yourself in their shoes if you don't enter the market when you're worried about risk. But the friends around him boldly bought and retreated bravely to make a lot of money. Even if it's your own reasons, you will be dissatisfied in your heart. As the saying goes: do not suffer from widowhood but suffer from unevenness.

"What do you think?"

"I think the equity incentive plan should be coordinated with the equity incentive plan. The former issues Class B shares for all employees, while the latter issues Class A shares to reward outstanding employees who have contributed to the company free of charge. Excellent employees are the company's greatest wealth, and rewarding them with Class A shares is conducive to enhancing their sense of mission and responsibility for the company, so that they can grow together with the company. In addition, the general meeting of shareholders composed of outstanding employees can also put forward more favorable opinions on the development of the company and supervise the development of the company. ”

Guo Shouyun nodded, "You know I don't like those hostile takeovers. ”

"There is only a need to add one clause to the equity award plan: that is, after the employee leaves, he must sell the Class A shares he holds to the company at the market price. This ensures that we have enough stock to reward new outstanding employees, and that the board of directors has absolute control over the company. ”

"After you go back to this matter, we will hold a board meeting to discuss it and come up with a detailed plan for me. Guo Shouyun nodded and said.

"Yes... How will the funds obtained after the equity incentive plan be used?"

With a market capitalization of $85 billion and 500 million shares, $21.25 billion can be withdrawn. Of course, such a large sum of money should be planned in advance for how it will be used.

"As the CEO of Pacific Energy Group, where do you think we should go?"

"In emerging markets such as Asia and South America, we have invested enough money and it is time to expand our presence in Europe. Jonathan Weil said firmly.

"So you already have a goal?"

"E.ON Group!"

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。 Reading at zero o'clock