Recast youth

Chapter 1111 Equity Incentives

"Mr. Ye."

"Mr. Ye."

When Ye Feng and Wen Yueqi arrived at the company, the honorific titles from the employees rang in Ye Feng's ears. Since the company decided to go public, the mood of the company's middle-level leaders and above has become even higher.

But not enough.

After all, you can make money by yourself, and you can make a lot of money.

When Ye Feng walked to the door of the office, he saw Wang Xin's assistant and stopped her: "Please ask Wang Xin to come to my office."

"Alright Mr. Ye."

The assistant responded to Ye Feng's instructions, and then Ye Feng and Wen Yueqi returned to their office. They didn't wait long before there was a knock on the office door.

Wang Xin walked in.

"Mr. Ye, good morning, Sister Qi." Wang Xin nodded to Ye Feng and Wen Yueqi.

"Good morning."

Wen Yueqi sat on the sofa and replied with a smile, then stood up and said to Ye Feng: "You guys talk first, I'll go see Zhao Lu and Ian's work."

"Ah."

Ye Feng nodded.

After Wen Yueqi left, Wang Xin came to the desk and asked Ye Feng gossiping: "Mr. Ye, tell me the truth, are you and Sister Qi in a relationship?"

Ye Feng said: "Guess."

"Can't you just tell me?"

Wang Xin glanced at her infinite boss angrily, and then said enthusiastically: "To be honest, I really didn't expect Sister Qi to be the leader's daughter. No wonder she has such a good temperament."

Ye Feng looked at Wang Xin and said in a rather "disappointed" tone: "I thought that a career-oriented strong woman like you would be as aloof as Wu Zetian, the eternal empress, and would not gossip. I didn't expect that she is also a common person."

"Wu Zetian is also a woman, and as long as she is a woman, she is curious."

Wang Xin was not annoyed at all, and said with a strong thirst for knowledge: "Speaking of which, how far have you and Sister Qi progressed? She is already living in your house, so you should have something like that, right?"

Ye Feng said with a pity: "I thought about it too, but it's a pity that I couldn't do it."

Wang Xin also felt a little pity: "That's a pity. If you could really be with Sister Qi, then the financial and policy problems encountered by Lanshan Payment would be simple."

Ye Feng was a little speechless.

He originally thought that Wang Xin knew Sister Qi's identity from Chen Xiao and was curious about the leader's daughter. Unexpectedly, what she wanted was to get her boss to betray her lust and then exchange for actual policy benefits for the company.

Ye Feng said: "You are worthy of your position as CEO and you really think about the company. Sister Xin, as talented as you are, it would be a pity not to go to the train station to pimp."

"Screw you."

Wang Xin rolled her eyes at Ye Feng: "You are the pimp. It's really ugly."

Ye Feng resisted the urge to slap Wang Xin's face with depression, and then said: "Let's not talk about this anymore. Have you made a plan for the equity incentives we talked about last time?"

"Think about it."

Wang Xin nodded, then she looked at Ye Feng and asked: "But do you really want to implement an equity incentive plan?" Ye Feng said angrily: "Otherwise, you think I am joking with you?"

"Actually, the annual salary is quite good."

Wang Xin walked to the tea table, ordered water, and pressed it for three seconds. After the water was drawn automatically, she sat down, crossed her legs and looked at Ye Feng and said, "It's a little too late to use equity incentives now."

"Huh? What do you say?" Ye Feng looked at Wang Xin in surprise.

Wang Xin said: "Because the company has gone public too late and the valuation is too high, and you own 100% of the company's equity, if you want to provide equity incentives now, it will be equivalent to taking money out of your pocket and giving it to the management."

Ye Feng asked: "That's it?"

"That's all?"

Wang Xin looked at Ye Feng with a smile and said: "Don't you think there is anything right now? 1%, even 5%, 10% of the shares are given out as soon as they are given. After all, it is just superficial data, just like a decimal point. It doesn't hurt." It's itchy, but do you know how much the shares here are worth in terms of money? It could be 1 million or 10 billion, which is not a small amount."

"So, I think it's good to use high annual salary settlement instead of equity incentives."

Wang Xin continued: "After all, if a senior executive is given an annual salary of 50 yuan or 100 million yuan, it is very high. How many years of salary can [-] million yuan be enough to pay them?"

Ye Feng shook his head: "In this way, people will have no dreams while working."

"Yes."

At this time, the water was boiling. Wang Xin made herself a cup of tea and continued: "Everything has its pros and cons. Incentive programs such as wages, commissions and bonuses can meet the needs of some senior executives, but after all, they are not as good as equity incentive programs. This means that the interests of the company's owners and employees are not completely consistent. The owners focus on the long-term development of the company and investment returns, while the managers and technical personnel of the company are employed by the owners and are more concerned about their jobs. The difference in value orientation between work performance and personal income during the period will inevitably lead to different behaviors of both parties in the operation and management of the enterprise, and it often happens that employees act for personal interests at the expense of the overall interests of the enterprise."

Ye Feng nodded: "Yes, that's right."

"Equity incentives are different. The result of implementing equity incentives is that the managers and key technical personnel of the enterprise become shareholders of the enterprise, and their personal interests become consistent with the interests of the company. This can effectively weaken the contradiction between the two. , thus forming a community of corporate interests.”

Wang Xin took a sip of tea and continued: "The managers and technical personnel of the company become shareholders of the company and have the right to share the profits of the company. The operators will be rewarded or punished based on the quality of their work. This expected benefit or Loss has a guiding role, which will greatly increase the enthusiasm, initiative and creativity of managers and technical personnel. After employees become shareholders of the company, they can share the high returns brought by high-risk operations, which is conducive to stimulating the development of their potential. This This will encourage operators to boldly carry out technological innovation and management innovation and adopt various new technologies to reduce costs, thereby improving the company's operating performance and core competitiveness."

At the end, Wang Xin summarized Ye Feng: "To put it simply, the implementation of the equity incentive mechanism can, on the one hand, allow employees to share the benefits brought by the company's growth, enhance employees' sense of belonging and identity, and stimulate employees' enthusiasm and enthusiasm. Creativity, on the other hand, will lose this part of the benefits when employees leave the company or have behavior that is not conducive to the company, which increases the cost of employees leaving the company or "making mistakes". Therefore, implementing an equity incentive plan is beneficial Enterprises retain and stabilize talents.”

Ye Feng only knew that the company had an equity incentive plan before, but did not know the details. Now after hearing what Wang Xin said, he finally had a general understanding.

Ye Feng raised his head: "What about the method of motivation?"

"There are two main types."

Wang Xin said with ease: "Equity settlement and cash settlement. Equity settlement is divided into equity options, restricted stocks, performance stocks, and employee stock ownership plans. Cash settlement is divided into equity appreciation rights, virtual equity, performance units, and profit sharing plans. , both solutions have advantages and disadvantages. The advantage of equity settlement is that the incentive objects can obtain real equity, and the incentive effect is obvious. The company does not need to pay cash, and sometimes it can obtain cash inflow. The disadvantage is that the company’s share capital structure needs to change, and the original shareholders hold The shareholding ratio will be diluted.”

Ye Feng was thoughtful and then asked: "What about cash settlement? What are the advantages and disadvantages?"

Wang Xin interface explained: "The advantage of cash settlement is that it does not affect the company's capital structure, and the shareholding ratio of original shareholders will not be diluted. The disadvantage is that the incentive effect is weak. The company needs to pay in cash, and the pressure on cash payment will be greater."

Ye Feng understood the models of equity settlement and cash settlement. To put it bluntly, one is real equity, and no money is required for the time being, and the other is false equity, but there is equity in the stock, and money needs to be paid, just like he and Hou Yao, Zhouyihang, and Jingke Pictures Co., Ltd. founded by Ning Hao. Ning Hao's stock rights are similar to cash settlement.

"Okay, I understand."

Ye Feng raised his head and said, "Just follow your ideas. When can you put the equity incentive plan on paper?"

"You can ask Chen Xiao to make the plan contract. The legal department should be familiar with the equity incentive contract template."

Wang Xin picked up the tea cup, took a sip of tea, and said to Ye Feng: "I am responsible for preparing the proposal for equity incentive qualifications. Everything falls on me, and I am quite tired."

(End of this chapter)