Reborn as a tycoon in Hong Kong

In the afternoon, Lin Baicheng brought Cheng Yufeng and financial people to Hutchison Whampoa.

Hutchison Whampoa's management, headed by Wei Li, welcomed Lin Baicheng's arrival, at least on the surface, and the group went to the conference room.

"Everyone, although you should all know who I am, I think I still need to introduce myself. I am Lin Baicheng. I am the boss of Galaxy Games and Asia Television. I am also the largest shareholder of Hutchison Whampoa."

When Lin Baicheng said this, Cheng Yufeng distributed copies of Lin Baicheng's shareholding certificate to Wei Li and others.

After reading it, Wei Li and others knew that this was true. Lin Baicheng was indeed the company's largest shareholder now.

While Wei Li and the others were looking at the copy, Lin Baicheng continued: "With the shares I hold, I will automatically obtain a director seat in the company and be elected as the company's chairman. I hope everyone here can support my management. Good company and will grow the company with my decision-making.”

"Mr. Lin."

We had already introduced him when we met before, so Wei Li did not introduce himself again this time. He said: "As for the development of the company, we have made relevant plans. Once we change the development direction of the company, it may have a negative impact on the development of the company. Impact. I think you, Mr. Lin, don’t want what was said in the newspaper to happen. After you, Mr. Lin, took control of the company, the company’s development became worse and worse.”

Vice President Richard Xin also said: "Mr. Lin, we will definitely support you in managing the company well, but the development and growth of the company does not happen overnight. Now that the company's development has just improved, it is best to maintain the original development plan. choose."

Management such as Xia Boyin and Wei Peter also nodded in agreement.

Lin Baicheng was not surprised when he saw this. For a listed company, becoming the largest shareholder does not mean that you can immediately control the company. You also have to control the company's board of directors.

If the shareholding ratio is high, the company will control the shareholders' meeting, but the shareholders' meeting will not be held several times throughout the year. The board of directors is different. The board of directors is responsible for managing the company, and the management is naturally managed by the board of directors.

At the same time, the management usually has several people serving as directors on the board of directors. For example, Hutchison Whampoa has a total of nine directors: President Wei Li, Vice President Richard Richard, Vice President Chen Xinghan, Xia Boyin who is in charge of business, and Xia Boyin who is in charge of human resources and government affairs. These five people, Peter Wei, are all directors on the board of directors.

Once there is management support, major shareholders can easily control the company's board of directors and thus control the company.

Of course, this does not mean that the largest shareholder cannot control the company without the support of management. This is impossible, but it will not be so smooth. It will take time to slowly replace the directors on the board of directors with their own people, and then pass The board of directors arranges its own people in the company so that it can slowly take control of the company, which takes a lot of time.

Lin Baicheng is not prepared to spend so long taking control of the company. What he has to do is to get the support of Hutchison Whampoa's management. After all, if he fires these managers, he will have to look for talents outside for Hutchison Whampoa. That will definitely take a lot of work for Hutchison Whampoa. It takes a long time to return to normal development.

Moreover, Wei Li and others are indeed talented people. Wei Li was able to develop Hutchison International, which was on the verge of bankruptcy, and merged with Whampoa Dockyard to form the current Hutchison Whampoa. The company has a market value of nearly 3 billion Hong Kong dollars. There is no doubt about his ability. , and the capabilities of other management teams are also not bad.

Lin Baicheng is ready to see if he can stabilize the management such as Wei Li and let them develop Hutchison Whampoa under his general plan. If possible, it would be best if Wei Li and others would continue to manage the company, and Lin Baicheng would acquire a large number of talents; if not, it would be regrettable to slowly fire Wei Li and others, and smoothly replace Hutchison Whampoa's management.

"This is the first proposal I will submit after becoming the chairman of the board of directors of Hutchison Whampoa. Please take a good look at it. I hope to get your support by then, just as you will support me in the development of the company in the future."

Lin Baicheng nodded to Cheng Yufeng as he spoke. Upon seeing this, Cheng Yufeng took out some documents and distributed them to Wei Li and other senior officials, one copy for each person.

This is a proposal about an equity incentive plan. The company's management, outstanding employees, and employees who have made important contributions to the company are all within the scope of benefits of the incentive plan.

The proposal proposes that the company should spend 20% of the previous year's net profit every year to purchase the company's stock. This part of the stock will be managed uniformly as an incentive for management and outstanding talents. Each person will receive different stock incentives based on their contribution. , until the incentive plan acquires 5% of the total share capital.

Only if the company makes money every year can 20% of its net profits be used to buy company stocks. And for those who receive equity incentives, their stocks have a limited sales period, and they are not allowed to sell their stocks within three years after receiving the stock incentives. If they voluntarily resign or are fired from the company due to gross negligence, the employee's incentive stocks will be withdrawn, and other restrictions.

In Lin Baicheng's proposal, if management and outstanding employees want to obtain stock incentives, they must develop the company well and be prepared to stay in the company for several years, otherwise it will be meaningless even if they receive incentive stocks.

"This is really attractive!"

Looking at the bill in his hand, Wei Li admitted that he was moved. He wished that the stock incentive bill would be passed immediately.

As the president of Hutchison Whampoa, Wei Li's salary is not low, and when he was invited to become president, he also received an incentive contract with an annual net profit of 2.5% for five years. Based on Hutchison Whampoa's net profit of just over HK$100 million last year, this incentive contract brought him as much as HK$2.5 million in rewards. With annual salary, his income exceeded HK$3 million.

The annual income exceeds 3 million Hong Kong dollars, which is very high, but Weili knows very well that the reason why he had such good profits last year was because he sold a large number of the company's short-term investments and recovered a large amount of funds. Otherwise, it would be good if he did not lose money. More importantly, the incentive contract expires in 1980, and this year is already 1978.

However, in the proposal proposed by Lin Baicheng, the company provides management and outstanding talents with up to 5% of stock incentives, which is 20 million shares. This incentive plan is not distributed equally, but distributed based on contribution. As president, Wei Li distributes The number of stocks received must be one of the largest.

As long as Weili can get 1 million shares of stock incentive, it will be equivalent to him getting about 7 million Hong Kong dollars in vain. If the company develops better and better, his shares will become more and more valuable.

As the CEO with the highest income, Wei Li was moved, not to mention everyone else. Everyone present knew the benefits of this incentive plan to them, and no one would have trouble with higher income.

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