Jimmy talked for a long time, talking about the benefits that Deep Space Company would bring to Huawei. The purpose was naturally to play the emotional card and keep the price down.
Rationally speaking, after Ren Zhenfei sells Huawei, Huawei will have nothing to do with him, but emotionally speaking, Ren Zhenfei definitely hopes that Huawei will get better and better.
Moreover, there are so many employees in the company, and their future development is bound to Huawei. Only when Huawei develops can these employees have better development.
He did think about selling the company to Motorola before, because he knew that as Huawei develops better and better, it will definitely attract the attention of the United States. If it can have an American hat, it will definitely be better for future development.
Huawei's shareholding structure is different from that of ordinary companies. Their company is held by the labor union. Nearly 99% of Huawei's shares are in the hands of the Huawei labor union. Ren Zhenfei only owns a few percent of the shares.
When certain restrictions are removed, Huawei is equivalent to full employee stock ownership. Employees hold virtual shares. Although they are different from real shares, they can enjoy dividends and stock appreciation profits.
.
But after Shen Kong acquires Huawei, whether Shen Kong is still willing to use the original equity structure depends on Shen Kong’s intentions.
Jimmy was still not in a hurry to talk about the acquisition price. He took a sip of tea and asked Ren Zhenfei, "Mr. Ren, if you leave Huawei now, what are your personal plans next?"
Ren Zhenfei smiled, "Whether it will be sold is still uncertain... If I really leave Huawei in the end, maybe I will enter the machinery industry, or I may continue to stay in the communications industry."
Regarding what to do in the future, Ren Zhenfei's team has a lot of differences. Some people want to make tractors. Now domestic tractor factories have closed down, closed down, and their development is very poor. These people are planning to make tractors in Luoyang.
The factory bought it.
Chinese tractors are expensive and have problems such as oil leakage, high temperature intolerance, and starting failures. These people believe that these problems can be solved through integrated product development, and then increase the price of the product to US$2,000 in an effort to build a tractor.
kingdom.
The second option is to continue working in the communications industry, but in this case you will definitely continue to be involved with the company that acquired Huawei.
Yu Dong smiled and asked, "You should already have an idea, right?"
Ren Zhenfei waved his hand, "This is all for later. The first thing we are facing now is the lawsuit from Cisco. Speaking of which, I would like to thank you. If you hadn't told us that Cisco was going to sue us for the operating systems of quidway routers and switches,
I don’t have a clue yet.”
Jimmy smiled and said, "Even if you know this now, you can't ignore other aspects."
Ren Zhengfei smiled and nodded, agreeing to this. After all, Jimmy's words cannot be believed 100%. In the mall, it is better to be cautious. Besides, even if Jimmy did not lie to him, no one can guarantee that the information Jimmy got is correct.
So even though he knew that Cisco was going to sue them over the operating systems of quidway routers and switches, Ren Zhenfei still asked the company's people to investigate it from beginning to end.
…
The morning tea was quite peaceful, and no one recognized Yu Donglai.
The pace of morning tea in Shenzhen is indeed very fast. Yu Dong and the others were also led to speed up their morning tea. They finished the morning tea in less than forty minutes.
After having morning tea, the group of people drove to the Shangri-La Hotel.
After arriving at the hotel, Jimmy didn't make any more detours with Ren Zhenfei and the others, and said directly, "Mr. Ren, in terms of price, we can raise the price to 6.6 billion U.S. dollars, but there is a condition."
"What conditions?"
After saying this, Ren Zhenfei felt a little regretful, because his reaction was too obvious, and it was immediately obvious that 6.6 billion U.S. dollars was within his acceptance range.
Ren Zhenfei sighed silently. There were too many things going on in the company during this period, and his physical condition was not good. He always felt powerless to do anything, and wanted to give in to everything. He no longer had the same enterprising spirit as before.
.
Sure enough, when he heard Ren Zhenfei's words, Jimmy smiled. He knew that the price of 6.6 billion US dollars was no longer a big problem.
"My condition is very simple, that is, you can stay at Huawei."
"Should I stay at Huawei?" Ren Zhenfei squinted at Jimmy, "Is this your condition?"
"Well, that's my condition." Jimmy nodded.
"How can I stay at Huawei?"
"Stay on the board and be CEO."
Ren Zhenfei laughed and said, "You want me to work for you."
Jimmy also laughed, "Didn't Mr. Ren always say that Huawei belongs to everyone? If that's the case, how can you be considered working for us? It's just that we all work together to build Huawei and develop Huawei. The company's system will have some
adjustment, but the general direction of the union's shareholding will not change, so you can stay in the company with peace of mind. As long as the company does not collapse, your annual income will not change, and we will not interfere too much with the company's development.
."
Ren Zhenfei stared at Jimmy for a while, and then stared at Yu Dong for a while, then shook his head and said, "I can't understand it now. I can't understand what you guys want. This is 6.6 billion US dollars. What do you think?"
Aren’t you worried about losing money?”
Jimmy shrugged, "Sixty-six billion U.S. dollars is not a lot for us in deep space."
Yu Dong almost couldn't help laughing next to him. Jimmy's words were purely bragging. The 6.6 billion U.S. dollars is a lot for the current deep space. In order to squeeze out the 6.6 billion U.S. dollars, their company
There are many businesses that have been affected.
However, Ren Zhenfei didn't think Jimmy was bragging. After all, there were too many rumors about deep space, and the amount of money they invested in the stock market alone was more than this amount.
This chapter is not over yet, please click on the next page to continue reading! After bragging, Jimmy continued, "I have carefully understood the operating mechanism of Huawei's labor union shareholding committee. The company determines what they can do based on the performance and contribution of employees.
The shares obtained are capped by the employee's job level. After each level reaches the upper limit, there will no longer be participation in the allotment of shares. Employees need to invest in the stock price determined by the valuation of the company's net assets that year, and the economic benefits of holding cannot be
transfer."
Ren Zhenfei nodded and said, "Yes, this is the operating mechanism of the stock-holding union."
"I can understand your idea. You hope to use this method to closely link the company's performance with the employees' income, mobilize the enthusiasm of employees, and give them a sense of ownership. In this way, work efficiency can be increased. But this kind of operation
There is a problem with the mechanism, and you may not be aware of this problem yet, but as time goes by and Huawei develops better and better, the problem will gradually become apparent."
Ren Zhenfei frowned and asked, "What's the problem?"
Yu Dong took over the conversation and said, "As the company's economic benefits get better and better, and the stocks in the hands of old employees continue to increase in value, some old employees can just rely on the stock returns to live a life of nothing, because even if they don't work hard, the money will be gone."
It won’t be less. And there are only so many shares. If the shares of old employees are not reduced, the room for advancement of new employees will be smaller, which will affect the fighting spirit of young employees.”
After listening, Ren Zhenfei remained silent. He knew that what Yu Dong said was right. Human nature is like this. If Huawei really develops better and better in the future, the situation that Yu Dong told Jimmy would definitely happen. But now their
The implementation of virtual stocks has not been particularly long, and the company's development has not reached a certain level. No one in the company is qualified to sit back and take advantage of the situation, so the problem is not yet prominent.
"If you take over Huawei, do you hope to solve this problem in advance?" Ren Zhenfei asked.
Jimmy nodded, "Yes, this is a good opportunity. Company mergers and acquisitions can be regarded as a reshuffle. Then new policies can be gradually implemented."
"Can you tell me how you plan to solve this problem and what are the new policies?"
Jimmy smiled and nodded, "No problem, if Deep Space can buy Huawei, you will also have to participate in the formulation and implementation of new policies in the future. If Deep Space does not buy Huawei in the end, these can be regarded as our suggestions for Huawei. Want to
To solve the problems caused by long-term allotment of shares, virtual shares plus an incentive option plan can be used. The incentive option plan is a deferred distribution of cash rewards and is a medium- and long-term incentive model..."
In the next period of time, Jimmy explained the new policy to Ren Zhenfei.
What Jimmy is talking about is a virtual allotment plus an incentive option plan, which is equivalent to pre-authorizing the right to obtain benefits, but the benefits need to be realized gradually over the next few years, and are also linked to performance. The most important thing is that this thing is time-limited.
It may expire in a few years.
In this way, some employees can be prevented from passively slacking off by relying on dividends after obtaining virtual shares, and employees need to stay active for a long time.
Of course, virtual shares cannot be completely discarded, because some high-level employees cannot be retained by simply rewarding them with options.
This set of things sounds quite simple, but there are many doorways and rich details. It is impossible for Jimmy to explain them clearly in a short time.
In fact, Jimmy himself has not yet figured out this model. Some foreign companies are implementing similar models, but they are not perfect. In fact, Jimmy also wants to try it on Huawei to see if he can come up with a relatively complete model.
If possible, he hopes to use it on Deep Space Company in the future.
Nowadays, Deep Space Company has a relatively good welfare system and the company is in a stage of rapid development, so the energy of the company's employees is still very high. But Jimmy knows in his heart that once it reaches a certain stage, Deep Space will also encounter the problems that it should encounter.
So he had to plan ahead and start planning early.
If we reform Shen Kong from the beginning, the risk will be too high. Once the reform fails, the consequences will be disastrous. If we just find a small company to do the experiment, the effect may not be good. It is difficult for the management model of a small company to be applied to the scale of Shen Kong.
of the company.
Huawei is a good choice, and its model is quite unique in China and can be used as a reference.
Ren Zhengfei also benefited a lot after listening to it.
Jimmy retained the fictitious shares for sale in the hope of retaining the company's top executives, while Ren Zhengfei was considering raising funds for the company.
When it was decided to sell virtual shares before, the main purpose was to get money from employees to develop the company, and the effect was pretty good. Ren Zhenfei even believed that this method of raising funds was more effective than options and equity awards in listed companies.
, because listed companies' equity incentives can only issue new shares, or old shareholders sell old shares, resources are very limited, and it is difficult to operate and the cost is high. However, virtual shares are very simple to increase, and they are issued internally, with almost no regulatory costs.
.
Of course, this method of raising funds has also been criticized by some people, who believe that it has constituted illegal fund-raising, or illegal issuance of company securities and illegal absorption of public deposits.
Ren Zhenfei sighed slightly, "Today I finally know why Deep Space Company is so successful. I originally thought that Deep Space could develop mainly because of its good vision and early investment in many well-known cultural products. Now it seems that these
IP is secondary, the company’s operations are the most important.”
Jimmy smiled and did not deny it, but he knew in his heart that the reason why Deep Space Company can develop so fast is because Yu Dong has a good vision, and Yu Dong can always see the potential of something at a glance.
Since the establishment of their company, they have made many mistakes, and many of them were related to Yu Dong. Among them, the one that impressed Jimmy the most was "Two Smoking Barrels".
It's not that "Two Smoking Barrels" made the most money, but it was the easiest and fastest way to make money.
When they got "Two Smoking Barrels", the movie had already been shot. All they had to do was buy the movie and send it to theaters to play. They did very little in the whole process, but the final profit was
But it's ridiculously high.
The Stings spent a total of US$2 million investing in the film, while Deep Space spent US$3 million to buy 80% of the rights to the film. In the end, the film's global box office total exceeded US$100 million.
The box office alone has made Deep Space Company a lot of money, and there will be other income in the future, the most important of which is the disc income. "Two Smoking Barrels" has performed very well in the disc market, and now it has
The cumulative sales of more than two million discs have reached more than 50 million U.S. dollars. It is difficult to estimate the film and television copyright, but it is certainly a lot.
A movie that only cost three hundred US dollars, and Deep Space Company did nothing, made tens of millions of US dollars. Who can see this rate of return and say it is awesome?
If it weren't for these projects with ultra-high yields, how could Deep Space Company develop to this scale in less than ten years? Normal development would be impossible no matter how perfect the company's operating system is.
Chapter completed!