Section 093 Necessity of Equity Incentives
After reading the report, Li Xuan exhaled deeply, he looked up and smiled at He Guoyuan: "It's very good, I didn't expect our Dongfang Electronics to have developed to such a large scale!"
He Guoyuan is also full of smiles, this is not bad, he never thought before jumping to Dongfang Electronics, this is a giant company with an annual profit of hundreds of millions of US dollars.
"Next, I hope that the company's management can design a reasonable equity incentive plan, the company's rapid growth is inseparable from the joint efforts of all employees, and all employees should be allowed to share the dividends of the company's development!" Li Xuan said suddenly.
He Guoyuan was stunned for a moment, a hint of joy flashed on his face, and he immediately nodded. Equity incentives are very common among high-tech companies in the United States, especially those founded in Silicon Valley. Most of these start-ups are made up of a few founders, come up with a promising project development plan, and then convince venture capitalists to take the money.
These new companies often don't have enough money to start with, and they need to look for financing round after round before going public, so it's naturally impossible to offer employees attractive salaries. But in order to attract and retain talent, companies will make returns in other ways, such as stock options. The company will promise employees that as long as the service has completed a certain period, they can purchase the corresponding shares from the company at the price and number agreed in the agreement after the company's shares are listed and circulated.
In order to one day, employees will naturally work hard to turn the option agreement in their hands into real money, in order to make the company go public and raise funds. In this way, all employees are tied to the company's chariot and move forward together.
As a result, every time a large technology company completes its IPO, the entire company will instantly have a large number of billionaires, multimillionaires, and millionaires. Even for low-level ordinary workers, as long as they have completed enough years of service, receiving option awards is a lot of extra income.
However, the term equity incentive is still a very unfamiliar word to most people in Hong Kong now. Most Hong Kong companies are family-run, and even if they hire excellent professional managers from outside, they are only on the condition of offering high salaries, and rarely take the initiative to let the management directly hold shares.
Of course, this also has to do with the fact that most of Hong Kong companies are concentrated in the textile, garment, toys, and real estate industries, and it doesn't matter if they lose one or two people in these industries. However, Dongfang Electronics is different, Li Xuan wants to establish a R&D company, not a manufacturing plant, how to maintain the stability of management and scientific research personnel has become the top priority in the development process of Dongfang Electronics.
What's more, Li Xuan knew very well that throughout the 80s, Hong Kong was fluctuating because of the Sino-British wrestling. If he hadn't taken precautions and thought of countermeasures in advance, Dongfang Electronics would inevitably be interfered with very strictly. Equity incentives are undoubtedly a good medicine for cohesion. Before all the options are cashed out, employees will have to suffer great losses when they leave Dongfang Electronics, and this decision is not easy to make.
Dongfang Electronics' half-year profit is as high as 100 million US dollars, and Han Peng, the company's highest-paid CEO with the highest annual salary, has a salary of only 800,000 Hong Kong dollars. Even if the year-end bonus is paid at the highest level in the salary contract, the total annual income is 2 million Hong Kong dollars.
2 million Hong Kong dollars and 100 million US dollars, in the face of such a big gap, after a long time, who wants to watch the fruits of hard work go into the boss's pocket, and he can only take that dead salary, sooner or later he will have the idea of resigning and starting his own business.
Li Xuan is not willing to change the management twice in three days, and every change in the top management will have an unpredictable impact on the company's development. Since I have already eaten a large amount of meat, I should let other employees who have not worked hard and have hard work also share some broth to drink.
He Guoyuan walked out of Li Xuan's office with a smile on his face, and he and several other executives were undoubtedly the biggest beneficiaries of the equity incentive plan. He can imagine that when Dongfang Electronics goes public, his assets will climb like a rocket.
"Lao Xi!" As soon as He Guoyuan went out, Cao Jingya walked in.
"Something?" Li Xuan looked up and asked.
"Do you really want to send us stocks?" she obviously listened to a few words about Li Xuan's conversation with He Guoyuan just now.
"Of course, you are the first batch of veterans to join the company, I definitely can't treat you badly, you will wait to be a rich woman in the future!" Li Xuan said with a smile.
"Our company is not short of money, do you want to go public?" Cao Jingya naturally knew that if Dongfang Electronics' shares could not be listed and circulated, no matter how good the option incentive plan was, it would only be a flower in the mirror.
"We are not short of money now, it does not mean that we will not be short of money in the future! Don't look at us that we have made a lot of money from the arcade market now, but compared with those really multinational companies, our company is still just an inconspicuous small point!" Li Xuan shook his head and explained.
"Oh!" Cao Jingya nodded, before returning to her job from the excitement just now, "This is the human resources department after the preliminary screening, circled five candidates for the new secretary, and the final round of interviews will start in ten minutes." Director Wei asked if you were free, and if you were free, it would be best to go to the interview in person!"
"Oh!" Li Xuan agreed, taking the information handed over by Cao Jingya.
Starting next month, Cao Jingya will go to Hong Kong Chinese University to participate in a three-month full-time training. After the training, she will work as a deputy to the Director of the Administration Department, Lu Siming, to assist in the management of the company's Administration Department.
This full-time training is also part of the cooperation between DFE and CUHK. There were seven people who participated in the training, all of whom were outstanding talents who were ready to be promoted to middle management by the company.
Cao Jingya was already familiar with Li Xuan before the establishment of Dongfang Electronics, and was the first group of veterans to join after the establishment of the company. Li Xuan is naturally willing to push this girl who has a cheerful personality and a kind of unyielding energy to do things. And she had been Li Xuan's special assistant before, so Li Xuan had to find a new assistant.
"Huh?" Li Xuan looked at the information in his hand and sighed softly in surprise.
Cao Jingya, who was standing on the side, couldn't help but roll her eyes, men are really ** animals. The page that Li Xuan was flipping through happened to be a beautiful woman who had just crossed paths with him a few days ago.
Zhuang Erjing, born on December 13, 1959, graduated from the preparatory department of middle school, and previously worked as an administrative clerk in a watch factory.
If she gets her own secretary, I don't know who will play the Wenwen in "Mountain Dog"? The good girl Wenwen she played in "Mountain Dog" is wet and the perspective on her chest when she comes out of the water hibiscus makes countless men adrenaline soar.
When Li Xuan walked into the conference room, the interview was about to start. He nodded to Wei Wei, the human resources director who was sitting in the main seat, and found a seat on the side to sit down.
The five candidates sat across from each other, and the final screening session took the shape of a discussion. Wei Wei will ask a few questions, and then they will discuss and debate freely, from which they will observe a series of personal qualities such as each candidate's on-the-spot response ability, language organization ability, etc.
Li Xuan glanced around the conference room, just in front of a pair of beautiful eyes with surprised eyes, Li Xuan returned a kind smile to the other party.