Chapter 38 Option Incentive Plan

Chapter 38 Option Incentive Plan

Chapter 38 Option Incentive Plan

These options are actually a kind of gamble. The boss gives you options, saves some labor costs, and obtains part of the funds from employees exercising options for company development, and then shares the company's development dividends with you, especially the opportunity to get rich after listing!

Employees sacrifice several years of high salaries and exercise their options to invest, betting that the company will develop better in the future and even go public, thus getting rich overnight and changing their lives.

By the way, most of the option plans offered by companies generally involve the company giving away a small number of options and then giving employees permission to purchase a portion of the original shares at a relatively cheap price. Not all of them are free.

Since options are given, in order to allow employees to get rich quickly and cash out later, a listing must be arranged later.

Several rounds of financing can also be arranged before going public to obtain more funds.

The previous rounds of financing and listing can bring a large amount of cash to the company, which can be used to support the company's rapid development and seize market share.

Xu Shenxue wants to do a lot of things, but his own money is limited, and he simply cannot expand such a large business in a short period of time... Therefore, financing becomes a necessary option.

After all, even if Xu Shenxue is a billionaire and can even spend tens of millions on the research and development of smart phones in the early stages, he is still unable to promote the rapid development of the entire Zhiyun Technology on his own!
Not to mention anything else, the funds needed for the subsequent large-scale mass production and stocking of smart phones alone are in the billions...not to mention the various subsequent technological research and development that will cost even more money.

With this level of investment, even if you sell the entire WeCool Electronics you still can’t raise that much money.

Of course, Xu Shenxue could also take it slow, relying on the early cash flow of Wecoo Electronics and then slowly making money after Zhiyun Electronics launches smart phones. However, this pace is too slow...by the time you have been doing it slowly for ten years, others will have already snatched up the market.

Time waits for no one.

If they continue to save money, Zhiyun Technology's first-mover advantage will be offset, and then it will be caught in a big melee with a group of mobile phone manufacturers. Even if it can make it out later with the hard power of its scientific research system, it is almost time for it to be subject to trade sanctions...

By that time, it will be difficult to catch up with the development of chips and lithography machines.

So you have to act fast!

If you want to move fast, you need funds.

Therefore, financing and listing become more suitable options.

Now that he has the money, Xu Shenxue will be able to do a lot of things in the future, such as developing his own chip design, baseband research and development, and conducting research and development in the fields of 4G and even 5G.

Then you can also invest in the many industries needed for lithography machines to carry out early research and development of materials and process technologies!

Against this backdrop, Xu Shenxue also revealed the news of establishing an options plan to the core management and technical backbones in advance, which gave the management and technical backbones great motivation!

Who doesn’t want to be an original shareholder in a promising mobile phone startup?

Once this goes public in the future, the returns will be incredibly generous!

As for options, Xu Shenxue has already asked his colleagues in the human resources department to conduct preliminary surveys to determine the colleagues who will be granted equity incentives and the shares they will receive.

In addition, Hanlin Enterprise Consulting Company was asked to act as a third party to conduct research and provide recommendations.

Options are not given out casually. There are certain rules for how many options to give to different people.

In addition to the option plan, early stage negotiations are also underway for financing matters, and the person in charge of these matters is the financial director Kong Weiqian, who has been in the job for less than two weeks.

Unlike most of the employees in the company who are in their twenties or thirties, Kong Weiqian is almost fifty this year. Together with Xie Jianyong and Luo Yinian, they are the few "elderly people" in the company who are over 45 years old... Apart from the three of them, the rest are cleaning uncles and aunties!
As a high-tech startup company, Zhiyun Technology's employees are all very young. The R&D department is basically made up of guys in their twenties. Those in their thirties are generally supervisors and technical backbones at the team leader level. There are very few people over 40 years old, and they are all senior management.

Song Changhai, the R&D director in charge of the system optimization project, is actually only 32 years old this year.

The average age of the R&D department is very young, and the ages of people in other departments are generally not old either, basically around 20 or 30 years old... Even the cleaners are in their 40s or 50s. The sweeping uncles or aunties of this age are in good physical condition, and it is no problem for them to beat a programmer with one hand. In addition, they are efficient at work and not slow.

No matter what, Zhiyun Technology is a high-tech company. Even if it is a sweeping job, efficiency and performance must be considered...

The company also does not allow cleaning ladies and uncles to wear ordinary cleaning ladies and uncles' work clothes. Instead, the company allows cleaning ladies and uncles to wear whatever they want as long as it is not too outrageous.

After all, technology companies focus on casualness and do not pay attention to work attire, creating a kind of comfort unique to high-tech companies.

In Zhiyun Technology, even if you are a cleaning lady, you are an elite in the cleaning industry... and the salary is not bad.

Of course, it is really tiring. Colleagues in the R&D department and other departments stay up late to work overtime every day, even all night long, and your cleaning aunt also has to do logistical support work.

If there is no cleaning lady to help clean, the whole office will stink after an entire night, with takeaway lunch boxes, snacks, coffee, milk tea, etc. everywhere!

Don’t expect a bunch of nerds with dark circles under their eyes to do the cleaning…even if they wanted to, the company’s human resources department wouldn’t let them!

One of the main tasks of the human resources department is salary control, and they must pay attention to the salary-to-output ratio... if they spend 10,000 yuan in salary, they must produce more than 10,000 yuan in profit.

Let R&D engineers who are hired with an annual salary of hundreds of thousands or even hundreds of thousands of yuan do the cleaning?

If Luo Yinian finds out, he will scold you to death!
Even the cleaning ladies in Zhiyun Technology are relatively young, not to mention the other employees. In such an environment, Kong Weiquan, the 47-year-old financial director, has become an "old man"...

Of course, ordinary young financial personnel cannot hold a position like CFO. It requires rich experience and ability. In addition, they must have corresponding financing and even listing, and have a certain understanding and connections in the investment community.

Because the CFO of a start-up technology company, in addition to basic work like managing money and doing accounting, also needs to be responsible for the company's financing matters, which is something that cannot be done without some experience and connections.

Kong Weiqian has a rich career resume. In the early stage of his career, he worked in an accounting firm. Later, he worked as a financial officer and even became the financial director in many startup technology companies. He presided over many rounds of financing.

In recent years, he worked in a fairly large investment institution, but last year he had a conflict with the senior management of the investment fund and resigned.

After leaving the job, I tried to find a job many times but to no avail...

Don’t think that it’s easy to find a job as a seemingly high-end talent. In fact, it is quite difficult.

Because the position is high and the salary requirements are also high, most small and medium-sized enterprises cannot afford it or have no need to hire them... Their expertise is not in doing accounting for you, but in tasks such as fund allocation, risk control, and maintaining cash flow, and then on this basis, they can raise funds and go public.

Why would a small or medium-sized enterprise with no strength or ambition need such a person? It's a sheer waste of money.

As for those large unicorn companies, they also look down on half-baked people like Kong Weiqian.

Kong Weiqian searched for a job for half a year before finally getting an interview at Zhiyun Technology on the recommendation of a headhunting company.

When Xu Shenxue interviewed him, in addition to asking about accounting issues, he also asked in detail about financing matters, and Kong Weiquan responded very well.

Finally, Xu Shenxue gave him a trial opportunity. As long as he passed the probation period, he would not have to worry about normal salary and the like, which would be based on the market price. In addition, he would also receive a considerable amount of options - these options were actually the remuneration for his work in presiding over the financing and listing!
The work content or assessment during the probation period is also very simple. Under the current limited cash flow of Zhiyun Technology, it is necessary to maintain the advancement of R&D, supply chain, and marketing work to ensure that these core businesses do not stagnate.

At the same time, we will do a good job in accounting and negotiate with various venture capital funds to prepare for Zhiyun Technology's Series A financing.

Xu Shenxue invited him to do financing.

(End of this chapter)