Backtracking to the Age of Literature and Art

Jimmy talked for a long time, all about the benefits that Deep Space 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 has 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 the future development of these people is tied to Huawei. Only when Huawei develops well can these employees develop better.

He also really thought about selling the company to Motorola before, because he knew that as Huawei's development gets 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 90.00% of Huawei's shares are in the hands of the Huawei labor union. Ren Zhenfei himself only owns a few percent of the shares.

In the case of removing certain restrictions, Huawei is equivalent to all employees holding shares. Employees hold virtual shares. Although they are not the same as real shares, they can enjoy dividends and profits from stock appreciation.

But after Deep Space Corporation acquires Huawei, whether Deep Space is willing to use the original equity structure depends on the meaning of Deep Space.

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 for the future?"

Ren Zhenfei smiled, "Whether it will be sold is still an uncertain thing... 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 the domestic tractor factory has closed down or shut down, and the development is very bad. This part of people plans to buy the tractor factory in Luoyang.

Chinese tractors are expensive, and there are problems such as oil leakage, high temperature resistance, and start-up failures. These people think that these problems can be solved through integrated product development, and then increase the price of the product to 2000 US dollars, and strive to build a tractor kingdom.

The second option is to continue to work in the communications industry, but in this way, it will definitely continue to be involved with the company that acquired Huawei.

Yu Dong asked with a smile, "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 Cisco's lawsuit. I would like to thank you for talking about this. If you didn't tell us that Cisco is going to sue us for the operating system of Quidway routers and switches, I still have no idea."

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 trusted [-]%. For shopping malls, it’s better to be careful. Besides, even if Jimmy didn’t 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 for the operating system of Quidway routers and switches, Ren Zhenfei still asked the company's people to check it from beginning to end.

……

The morning tea was eaten peacefully, and no one recognized Dong Lai.

The pace of morning tea in Shenzhen is really fast, and Yu Dong and the others were also led to speed up their morning tea. It took less than 10 minutes to finish a morning tea.

After morning tea, several people drove to Shangri-La Hotel again.

After arriving at the hotel, Jimmy didn't play tricks with Ren Zhenfei and the others, and said directly, "Mr. Ren, in terms of price, we can mention 66 billion US 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 the $66 billion was within his acceptable range.

Ren Zhenfei sighed silently. During this period of time, there were too many things in the company, and his physical condition was not good. He always felt powerless to do anything, and wanted to give way in everything. He didn't have the aggressiveness before.

Sure enough, Jimmy smiled when he heard Ren Zhenfei's words. He knew that the price of 66 billion US dollars was no big problem.

"My condition is very simple, that is, you can stay at Huawei."

"I stay at Huawei?" Ren Zhenfei squinted at Jimmy, "Is this your condition?"

"Well, that's my condition." Jimmy nodded.

"How do I stay at Huawei?"

"Stay on the board and serve as CEO."

Ren Zhenfei laughed, "You want me to work for you."

Jimmy also laughed, "Mr. Ren didn't always say that Huawei is everyone's Huawei. If that's the case, how can you count as working for us? It's just that we all work together to build Huawei and develop Huawei. There will be some adjustments to the company's system, 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, then stared at Yu Dong for a while, then shook his head and said, "I don't understand now, I don't understand what you want, this is 66 billion US dollars, you are not worried about losing money at all?"

Jimmy shrugged, "66 billion dollars is not a lot for our deep space."

Yu Dong almost couldn't help laughing. Jimmy's words were pure bragging. The 66 billion US dollars is a lot for the current deep space. In order to squeeze out the 66 billion US dollars, many businesses of their company have been affected.

However, Ren Zhenfei didn't feel that Jimmy was bragging. After all, there were too many rumors about the deep space, and the money they invested in the stock market alone was more than this amount.

After bragging, Jimmy continued, "Nowadays, I have carefully understood the operating mechanism of Huawei's trade union shareholding committee. The company determines the shares they can obtain based on the performance and contribution of employees. The employee's job level has a upper limit. After each level reaches the upper limit, they will no longer participate in the allotment of shares. Employees need to invest in the stock price determined by the valuation of the company's net assets in the year, and the economic benefits they hold cannot be transferred."

Ren Zhenfei nodded and said, "That's right, this is the operating mechanism of the shareholding union."

"I can understand your idea. You hope to closely link the company's performance with the employees' income in this way, mobilize the enthusiasm of employees, and let them have a sense of ownership, so as to increase work efficiency. But there is a problem with this operating mechanism, and you may not be aware of this problem, but as time goes by and Huawei develops better and better, the problem will gradually become apparent."

Ren Zhenfei frowned and said, "What's the problem?"

Yu Dong continued, "As the company's economic benefits are getting better and better, and the value of the stocks in the hands of old employees continues to increase, some old employees can rely on the stock income to sit and eat, because even if they don't work hard, the money will not be less. And there are only so many shares. If the shares of old employees don't decrease, the room for improvement for new employees will also become 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 Yu Dong told Jimmy will definitely happen.It's just that their virtual shares have not been implemented for a very long time, and the company's development has not reached a certain level. No one in the company is qualified to sit still, 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, and new policies can be gradually implemented at that time."

"Can you tell me, how are you going to solve this problem and what is the new policy?"

Jimmy smiled and nodded, "No problem, if Deep Space can buy Huawei, you will also 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. To solve the problems caused by the long-term allotment of shares, you can use virtual shares plus an incentive option plan. The incentive option plan is a deferred distribution of cash rewards, which is a mid-to-long-term incentive model..."

In the next period of time, Jimmy explained the new policy to Ren Zhenfei.

What Jimmy is talking about is the virtual allotment plus incentive option plan, which is equivalent to pre-authorizing a right to obtain benefits, but the benefits need to be realized gradually in the next few years, and it is also linked to performance. The most important thing is that this thing is time-sensitive and may expire in a few years.

In this way, it can prevent some employees from passively slowing down their work by relying on dividends after obtaining virtual shares, and employees need to maintain vitality for a long time.

Of course, virtual shares cannot be completely discarded, because some high-level employees cannot be retained only by rewarding options.

This set of things sounds quite simple, but there are many doorways and details in it. It is impossible for Jimmy to explain 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 have a try on Huawei. Can he come up with a relatively complete operating system? If possible, he hopes to use it on Deep Space Corporation in the later stage.

Now Deep Space Company has a relatively good welfare system and the company is in a stage of rapid development, so the vitality of the company's employees is still very high.But Jimmy knows in his heart that once a certain stage is reached, the problems that should be encountered will also be encountered in deep space, so he has to plan ahead and start planning early.

If reforms are made on Deep Space from the very beginning, the risk is too great. If the reform fails, the consequences will be unimaginable. If you just find a small company to experiment with, the effect may not be good. It is difficult to apply the management model of a small company to a company of the size of Deep Space.

Huawei is a good choice, and its model is quite special in China, which is more reference.

After listening to Ren Zhengfei, he also benefited a lot.

Jimmy reserved the dummy shares for sale in the hope of retaining the top management of the company, 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. Even Ren Zhenfei believed that this method of fundraising was more effective than options and equity incentives of listed companies, because listed companies can only issue new shares for equity incentives, or old shareholders sell old shares. Resources are very limited, and it is difficult to operate and the cost is high.However, it is very simple to increase virtual shares, and there is almost no regulatory cost for internal issuance.

Of course, this method of fundraising has also been criticized by some people, who believe that it has constituted illegal fundraising, or illegal issuance of company securities and illegal absorption of public deposits.

Ren Zhenfei sighed slightly, "Today, I finally know why Shenkong is so successful. I thought that Shenkong's development was mainly due to good vision and invested in many well-known cultural products in advance. Now it seems that these IPs are second, and the company's operations are the most important."

Jimmy smiled and didn't deny it, but he knew in his heart that the reason for the rapid development of Deep Space Company was because of Yu Dong's good vision. Yu Dong could always see the potential of something at a glance.

Since the establishment of their company, they have picked up many leaks, and many of them are related to Yu Dong. Among them, "Two Smoking Barrels" impressed Jimmy the most.

It's not that "Two Smoking Barrels" made the most money, but that it was the easiest and fastest time to make money.

When they got "Two Smoking Barrels", the film had already been filmed. All they had to do was buy the film and send it to the cinema to play. They did very little in the whole process, but the final income was ridiculously high.

The Stings spent a total of US$200 million investing in the film, while Deep Space Company spent US$300 million to buy 80.00% of the copyright of the film. In the end, the global box office of the film exceeded US$[-] million.

The box office alone has made Deep Space a lot of money, and there are other incomes in the future, the most important of which is the income from discs. "Two Smoking Barrels" has performed very well in the disc market. Up to now, it has sold more than 200 million discs, and the cumulative sales have reached more than 5000 million US dollars. It is difficult to count the film and television copyright, but there must be a lot.

For a movie that cost only three hundred dollars, Deep Space Company made tens of millions of dollars without doing anything.
If it weren't for these super-high-yield projects, how could Deep Space Corporation develop to this scale in less than ten years?Normal development, no matter how perfect the company's operating system is, is impossible. Those missing projects cannot be completed by the work operating system.