Rebirth of the internet boss

Chapter 450 Virtual authorized stock (first update)
Ren Zhengfei was born in 1944, and Li Feng was born in 1984. There is a 63-year-old man and a 23-year-old young man. There is a 40-year age difference between them, but they just met by chance, and they talked very harmoniously, just like friends who have forgotten each other.

Everyone didn't talk about the "Android Alliance". Instead, they talked about the current technological situation, all aspects of social development, and even some family matters.

Especially when Ren Zhengfei knew that Li Feng came from an ordinary worker's family and was truly self-made, he was surprised by Li Feng's entrepreneurial experience. Although Ren Zhengfei already had a high opinion of Li Feng, he also found that he still underestimated this young man.
And through talking, he found that this young man also has a calmness and stability that is different from ordinary people. Li Yinan beside him seems too childish, and he is really not a talent of the same level. For the first time, he began to examine whether "Li Yinan is a qualified successor".

During the conversation, the two also asked each other about the situation of each other's enterprises, and conducted in-depth discussions on some issues related to enterprise management and enterprise development.

Of course, most of the time, Li Feng's request is still the main one. Although Li Feng has also started his own business for many years and went to Harvard's MBA, he "learned on paper and found it shallow." Entrepreneurs gave Li Feng many unique insights.

Li Feng was really inspired and benefited a lot. No wonder Ma Yun likes to jump around, and many entrepreneurs also like to sign up for groups to keep warm. It turns out that sitting down and talking together can really learn a lot. This kind of experience and experience It cannot be learned from any book,
Even Li Feng had an idea to set up some kind of entrepreneurial club to hold regular seminars and exchange experience, but Li Feng has always been "do the best if you want to do it",
He doesn't want to limit this chamber of commerce to the country, he also wants to set up a world-class entrepreneur club, but his current strength and influence are not enough to handle this matter, let's let it go for now.

Since there is such a good "teacher" in front of him, then Li Feng should also be a good "student" and ask Ren Zhengfei a lot of questions about things that he is usually confused about.

And Ren Zhengfei also answered very patiently, not only Li Feng benefited a lot, but also Long Xiaotian next to him, only that Li Yinan was still brooding.

Especially for the "virtual authorized shares" that Fengrui X Lab is going to implement, Li Feng also specifically wanted to ask Ren Zhengfei for advice, after all, this is the real ancestor of the "virtual authorized shares".

"Mr. Ren, I'm going to use your Huawei's "virtual authorization stock" in my Fengrui X laboratory. Do you have any suggestions?" Li Feng asked.

"Then how are the current shares of your laboratory divided?" Ren Zhengfei asked.

The current share structure of "Fengrui X Laboratory" is: Li Feng holds 82.4%, management holds 8.1%, MIH holds 5%, Softbank holds 4.5%,

If the shares of MIH and Softbank are converted in equal proportions, Li Feng and the management’s shares in Fengrui Technology will be reduced by 9.5%, and the shares of Fengrui X Labs will increase accordingly. The final shareholding ratio should be: Li Feng Feng holds 82.4%, management 8.1%, and 9.5% newly added,

若以李锋和管理层的投资比例（82.4：8.1）分配这新增9.5%的股份，李锋新增为8.65%，管理层则为0.85%；

Finally, the shareholding structure of "Fengrui X Laboratory" is: Li Feng holds 91.05%, and the management team holds 8.95%.

Li Feng has always been "twenty to eighty points", and the current shareholding structure is mainly due to the fact that Li Feng and Fengrui Technology split equally at that time, and the ratio of Li Feng to the management in Fengrui Technology is only [-]%.

So after a rough calculation, Li Feng also said to Ren Zhengfei: "If the share conversion goes well this time, then the shares of our Fengrui X Lab will be very simple. I personally will hold more than [-]% of the shares, while the management will hold the rest." [-]%."

"[-]% of you, [-]% of the management, is there no one else? Or a risk agency or something?" Ren Zhengfei asked in disbelief.

It's incredible that a company can grow so big, and the founder can still firmly control the shares in his hands. I really don't know how this young man did it.

Li Feng also gave Ren Zhengfei an affirmative answer, "The main reason is that I invested in Fengrui's early investment, and the subsequent financing only took two rounds, and the financing ratio is also very small.

As for the shares of other venture capital institutions in the laboratory building, I plan to transfer them to Fengrui Technology in the same proportion, so the proportion of Fengrui X Lab is really simple, just me and the management, [-] points. "

"Why do you want to convert in the same proportion? Forget it, I seem to have asked too many questions. Let's just talk about the "virtual authorized shares" of your laboratory.
In fact, Huawei's "virtual authorized shares" are not as good as the outside world says. This is actually a product of the times. If we didn't do this at the time, Huawei would not be able to survive.

This is actually equivalent to a disguised form of financing, except that Huawei’s financing targets are Huawei employees, and this kind of financing procedure is simple and does not require review and reporting. Huawei does not need to be responsible to shareholders, but only to employees. "

Then Ren Zhengfei talked about the precautions and the pros and cons of this kind of "virtual authorized shares". Li Feng also listened carefully and studied. This is simply a kind of on-site teaching.

Huawei's "virtual authorized shares" are based on voluntary purchases by employees. So far, Huawei employees have increased their capital by more than 260 billion yuan through the Huawei trade union in the form of purchasing virtual shares.

In contrast, ZTE, Huawei's direct competitor, has raised only 24 billion yuan since its A-share listing. Listed in Hong Kong in 2004, the financing was only 21 billion Hong Kong dollars, and the level of financing is judged.

It can be seen from this that Huawei's virtual stock financing system is more effective than option equity incentives for listed companies.

Equity incentives for listed companies can only issue new shares, or existing shareholders sell old shares. Resources are limited, and approval by the general meeting of shareholders is required, which is costly to operate.Virtual shares can be increased indefinitely, and the source of stock is not a problem.

In addition, there is almost no regulatory cost for internal issuance.

The reason why Huawei employees are willing to buy Huawei's virtual equity is because of Huawei's rapid development over the past decade, and the huge increase in equity value;
And once this kind of equity incentive system is implemented, it will not be able to really go public, and employees will not be able to obtain huge capital filings.

Therefore, this "virtual licensed stock" has both advantages and disadvantages.

However, "Children only make choices, and adults all want it." This is just right for Li Feng. Fengrui X Laboratory does not need financing and listing, and can use "virtual authorized shares"; if Fengrui needs listing and financing , can be operated by other Fengrui affiliated companies.

Li Feng really learned a lot from Ren Zhengfei, it's like playing games, you will improve quickly if you have an old driver to guide you, but this analogy seems inappropriate!
(End of this chapter)