Reborn in Hong Kong as a Tycoon

Chapter 255 Dividends and Equity Incentives

"A dividend?"

This is something that Lin Baicheng has never thought about, because he is not short of funds for the time being, or in other words, he is not short of funds of hundreds of millions of Hong Kong dollars, so he never thought about dividends at the beginning.His idea is that all the funds are placed in Hutchison Whampoa's account, and used to develop the company, develop more land, and expand overseas after Watsons delisted.

You know, Lin Baicheng has a principal of 2 million U.S. dollars in long gold futures in the United States, and the cost price is less than 165 U.S. dollars per ounce. It can be about [-] million US dollars.Even after deducting taxes, there will be about [-] million US dollars left.

This is cash, and it is all controlled by Lin Baicheng. With the funds of about 30 billion Hong Kong dollars, Lin Baicheng certainly did not think about getting dividends from Hutchison Whampoa.

Seeing Lin Baicheng pondering, Cheng Yufeng couldn't help but said: "Boss Lin, if you feel that the dividend funds are not enough, you can raise the dividend funds further."

"It's not about money."

Lin Baicheng waved his hands when he heard the words: "I have never thought about paying dividends from the company, and I am not short of money for the time being."

Wei Li was very happy when he heard this, but he still said: "Mr. Lin, although you are not short of money, dividends are still necessary. This time the company made a profit of 18 billion Hong Kong dollars. If there is no dividend at all, it will be a big deal for other shareholders. But it’s hard to explain, so I have to take some cash out for dividends.”

Cheng Yufeng also said: "Boss Lin, for many shareholders, if a company pays generous dividends every year, then the company's stock is worth holding for a long time, which is conducive to the rise of the company's stock price."

"So, dividends are still necessary."

Lin Baicheng nodded thoughtfully, and of course he would not dislike being able to get the cash, and immediately said: "The premise of dividends is that it will not affect the company's development, and everything is based on the company's development. Then, are you sure about this?" If the 8 million Hong Kong dollars in cash is used for dividends, will it not affect the vigorous development of the company? What I want is the rapid development of the company and the rapid expansion of the real estate and retail industries."

"Mr. Lin, don't worry about this, it will definitely not affect the company's development."

Wei Li said solemnly: "As I said just now, with the company's current market value and scale, without a lot of debt, if you go to any bank for a loan or issue bonds, you can get a lot of money for the company's development. normal development."

After a pause, Wei Li continued: "Furthermore, there must be a limit to the company's real estate and retail expansion speed. This cannot be solved by money alone. Talents must keep up, otherwise the management and operation will be chaotic. , will only cause unnecessary losses.”

"That's true."

Lin Baicheng quite agrees with this, the expansion of the company does require talents to keep up, but he still reminded: "Wei Li, in terms of the development of the real estate industry, you can be more courageous, it's okay to develop more land, even if For this reason, it is acceptable for the company to bear a large amount of debt. Besides, although the company owns a lot of land, if the Hong Kong government has land auctions, remember to participate in the auction, and you can’t lose money by hoarding land.”

"Alright Boss Lin, I'll make a note."

Wei Li responded with some hesitation. Although this kind of development method can make the company's real estate industry expand faster, once the land price rises, the company will definitely make a lot of money, but if the land price is setback, the company will naturally suffer huge losses.

However, the land price in Xiangjiang is rising now, and Lin Baicheng has not made any major mistakes so far, so it is difficult for Wei Li to refute.After all, he is just a professional manager. Regarding the major development direction of the company, he must listen to Lin Baicheng, unless he feels that there is a major problem with a certain decision, then he will refute it.

Lin Baicheng said aloud: "In terms of capital dividends, don't take all 8 million Hong Kong dollars in dividends, let's distribute 6 million Hong Kong dollars in dividends, which is exactly one-third of the profit."

In this regard, Wei Li and the others have no objection, after all, the difference is not much.

Lin Baicheng said: "As for the company's investment profits and cash dividends, we will announce it after the stock market closes in the afternoon."

"Yes!"

Wei Li and the others agreed.

Looking at the four of them, Lin Baicheng suddenly said: "When I acquired the company at the beginning of the year, I promised your management that I would give you a 5% equity incentive. Now there are 1000 million shares in the company's special account. I am going to take it first. 100 million shares will be issued to motivate the management, and I believe this matter will be approved by the board of directors."

The board of directors will definitely pass. Wei Li, Cheng Yufeng, Xia Boyin and Wei Peter have four votes, plus Lin Baicheng, five votes can pass.The equity incentive is to give stocks to the management, and they will refuse if they are stupid.

"Thank you, Mr. Lin!"

Wei Li and the others were overjoyed when they heard the words. Although there were only 100 million shares, which was only 2000% of the total incentive of 5 million shares, but at the current stock price of nearly 60 Hong Kong dollars per share, 100 million shares was equivalent to nearly 6000 million Hong Kong dollars.

Although the incentive stock has a three-year sales restriction period, the stock price after three years may not be as high as it is now, but even if the stock price is cut in half by then, it will still be worth 3000 million Hong Kong dollars, which is quite a lot.What's more, if the stock price in three years' time is higher than it is now, then the 6000 million Hong Kong dollars may become [-] million Hong Kong dollars.

"You deserve it."

Lin Baicheng waved his hand, looked at the four people and said: "You have to make a good plan for the distribution of equity incentives, and you must implement them on outstanding talents. I don't want scandals to happen. If this happens, don't blame me for being rude." , the four of you are most responsible."

Wei Li immediately said: "Mr. Lin, don't worry, the incentive plan will definitely be announced to all employees at that time, and it will be clear whether there is any fraud."

"Wei Li, when we agreed to cancel your incentive contract, you can choose to receive 500 million Hong Kong dollars in compensation from the company, or 10 shares of stock as compensation. What is your choice?"

After the acquisition of Hutchison Whampoa, Lin Baicheng knew that Wei Li had an incentive contract of 'annual profit of 2.5%', so he found Wei Li at that time and negotiated with him.To cancel this incentive contract, as compensation to Wei Li, he can get 500 million Hong Kong dollars or 10 shares of the company at the end of the year, which is up to him to choose.

Of course, Lin Baicheng wanted to cancel this incentive contract, because he had already decided to use Hutchison Whampoa's funds to invest in gold futures. The company's profits in the past few years must have been very high, and it was impossible for him to let Wei Li lie down and make a lot of money.

At that time, Wei Li thought that the company's annual profit of 250 million Hong Kong dollars would be good, which means that it was very unlikely that he would receive more than [-] million Hong Kong dollars in rewards a year, so he was very happy to agree.

Fortunately, Wei Li agreed, otherwise Lin Baicheng would definitely choose to break the contract and kick Wei Li out of the company, at most he should pay him a liquidated damages.

(End of this chapter)