Reborn in Hong Kong as a Tycoon

Chapter 671 New Century Software Launched (Two in One)

The second day of the party, which is Monday.

Lin Baicheng did not leave Los Angeles according to the scheduled itinerary, but went to New Century Software Company.

"Chairman!"

Lin Baicheng came here without prior notice, so after Isabella learned about Lin Baicheng's arrival from the secretary, she came to Lin Baicheng's chairman's office with trepidation. She didn't know the purpose of Lin Baicheng's sudden visit.

"Bella, you're here, sit here!"

Lin Baicheng greeted Isabella and walked towards the sofa.

The two sat down, and Catherine came in with two cups of coffee.

Lin Baicheng had been to New Century Software Company a while ago, and he already knew about the company's recent development, and he had also been to all departments.

Therefore, Lin Baicheng did not gossip, but directly said: "I held a party last night, and some shareholders of New Century Software attended. Start preparations for listing."

"I thought about it last night and decided to let the company go public."

Lin Baicheng also knows that the office software market cannot last long, so taking advantage of the company's current performance to go public and collect money is the right way.

As for the underestimation of the two businesses of database and operating system, after consideration, he found that these two markets are very dependent on computers, and there is no big market at all until the computer market is popularized to a certain extent.

In the long run, these two markets will certainly have great potential, but it is impossible for New Century Software to wait until these two markets explode before going public, so whether the company goes public or not has nothing to do with them.

After consideration, Lin Baicheng even decided not to divest these two businesses, and just used the funds of New Century Software to support these two businesses, instead of Lin Baicheng spending money himself.

In fact, the most important thing is that Lin Baicheng knows that even if he spins off these two businesses, after he develops these two businesses to a certain level, he will eventually have to raise funds to sell his shares and go public to share benefits. He cannot eat alone.

"Chairman, I will cooperate with the work related to listing."

Isabella immediately responded that the listing of the company is not a bad thing for her.The president of a listed company can make her more famous, and the higher the company's market value, the higher her social status. In addition, the incentive equity she obtained can be cashed out at that time.

"Unsurprisingly, the underwriters of the company's listing will be Goldman Sachs and Citigroup. You will cooperate with Goldman Sachs and Citigroup to do relevant work, but you must pay close attention to it, and you must not let Goldman Sachs and Citigroup take advantage of it."

The higher the price-earnings ratio at the time of listing, the greater the benefit to Lin Baicheng, a major shareholder. On the contrary, Goldman Sachs and Citigroup, as underwriters, can lower the price of stocks. The more the stock price rises after listing, the more Goldman Sachs and Citigroup will earn.

Lin Baicheng must avoid this from happening. Fortunately, there is not only one underwriter, but at least two, Goldman Sachs and Citigroup. Both are shareholders of the company, and it is impossible to exclude one of them. Without such reason.

Therefore, Lin Baicheng doesn't need to worry too much, but he still has to guard against the fact that these two companies will combine to harm his interests. Although the possibility of this is very low, it is not impossible.

Isabella said aloud: "Chairman, in fact, we can choose another underwriter as the third party, so we don't have to worry about it."

"It can be considered, and the specifics will be discussed later."

Lin Baicheng did not refuse, and one more underwriter would not be harmful to the listed company.

Looking at Isabella, Lin Baicheng thought for a while and said: "Bella, once the company decides to go public, shareholders such as Goldman Sachs and Citigroup may propose to change the president again. Although you have done a good job as the president of the company, it is not How eye-catching, I am worried that they will take advantage of the listing to ask for a replacement of the president this time, so that the company can make better performance and the company can have a higher valuation after listing.”

Isabella couldn't help being surprised when she heard this, but said calmly on the surface: "Chairman, the company has developed very well under my leadership. If the president is suddenly replaced, it will definitely cause turmoil, especially when the company is about to go public. In order for the company to go public smoothly, I think all shareholders should believe in my ability, instead of taking risks and finding someone to replace me.”

"Bella, you are my man, and I will definitely support you. The candidate for president will definitely not be changed. I am the company's largest shareholder."

Lin Baicheng made a statement, giving Isabella a reassurance and letting her know his support for her.

"Thank you, Chairman, I will definitely not let you down!"

Isabella thanked her gratefully. She knew very well that with her qualifications and gender, without Lin Baicheng's strong support, she would never be able to become the president of a company with a valuation of hundreds of millions of dollars.

Today, only with the support of Lin Baicheng can she secure the position of president.

Looking at Isabella, Lin Baicheng said: "But Bella, I need you to make better results before the company goes public. Only in this way can other shareholders be convinced and believe in your ability. Only in this way can you let I know that I am right to support you."

Lin Baicheng's support for Isabella is not unlimited. If Isabella has not performed better, he will definitely hesitate, and eventually even replace Isabella.

"Chairman, don't worry, I will make achievements for shareholders to see."

Isabella nodded heavily. She knew that she could not always get the support of the big boss. She had to make performances that convinced the shareholders. Super high performance coupled with the support of the big boss was the foundation of her life.

"I believe you."

Lin Baicheng nodded, and then said: "Go and inform the other executives of the company. At 10:30, let them go to the conference room for a meeting. I have something to say to them."

"Chairman, if there is nothing else, I will go out first."

Isabella stood up.

"Go get busy."

Lin Baicheng waved his hand and walked towards the desk.

While Lin Baicheng was busy, the time came to 10:30, and he took Catherine to the conference room.

"Chairman!"

In the conference room, all the executives arrived, and when they saw Lin Baicheng coming in, they immediately got up to say hello.

"Everyone, sit down."

Lin Baicheng motioned for everyone to sit down, while he himself walked to a single middle seat.

New Century Software Company is now a large enterprise, with a large number of employees and executives. There are more than a dozen executives who are qualified to participate in this meeting. three.

"I called everyone to a meeting today because I have something to announce to everyone."

Looking around at the group of executives, Lin Baicheng paused for a moment, and then continued: "The shareholders and I have decided to start the company's listing plan, and the company will prepare for listing."

"Is it going to be listed?" "So soon?" "Good listing!".
Hearing this, the executives couldn't help discussing in a low voice, all of them were very happy.

For business executives, there are many benefits to going public.First of all, the size of the company will greatly increase due to listing, and its social influence will be greatly enhanced; the second is equity incentives. Whenever a company goes public, executives will more or less receive a certain amount of incentive equity.

To put it simply, the incentive equity that executives receive is at least equivalent to several years' salary, or even ten or even decades' salary, and their wealth can increase dramatically.

Lin Baicheng asked the executives to discuss in a low voice, and after their voices gradually faded, he said: "Since the company is going to go public, everyone in the company, including you, will be able to get a certain amount of original shares."

The executives were even happier after hearing this.

Lin Baicheng looked at Isabella: "Bella, you are the president of the company, and you and the two vice presidents will work out a plan for equity incentives and exercise prices, and then hand it over to me for review. It is completed before the company starts to go public, so that everyone in the company can share the dividends of the company going public."

When a company goes public, it is of course impossible for equity incentives to directly give shares to employees, and then employees can sell the shares after the six-month sales restriction expires. This is impossible.

If this is the case, the employee gets the stock and sells it half a year after the company goes public, with a salary equivalent to at least several years. Then, how much thought does the employee have to continue working in the company?

How can those executives who have received salaries for more than ten years or even decades at one time continue to work with peace of mind?
Therefore, under the equity incentive plan, the stocks that executives and employees get have an exercise price. After getting the stocks, they cannot reduce their holdings within the specified time of the company's listing. Usually, this time is not less than three to five years.

The employee's exercise price is usually much lower than the stock issue price, which varies from company to company. The exercise price may be only 20%, 10% or lower of the issue price.

Taking 10% of the exercise price as an example, if an employee can get shares worth US$1 when the company goes public, then the employee can get shares worth US$1000 for only US$1, which is equivalent to nine double the profit.

However, in order to get the nine times the profit, the employees have to continue working in the company for three to five years, and they must work hard to ensure the smooth development of the company and the high stock price, so that the employees can get nine times or even more benefits.

If everyone doesn't do things well, the company's development will not go smoothly, and the stock price will plummet, then the profits will be greatly reduced, which is tantamount to harming their own interests.

Moreover, employees cannot resign from the company before the sales restriction expires. If they voluntarily resign, they can only take away the $1000 at the time of exercise, and the shares will be recovered by the company.

Only in this way can the company keep excellent employees, and the employees can get a lot of returns after working for the company for a few years, which can be said to be mutually beneficial.

Therefore, it is very important to formulate a good equity incentive and exercise price plan, which is related to the interests of employees and enterprises, and should not be sloppy.

"Chairman, don't worry, we will assist President Kent to do a good job."

The voice was Hank Randolph, one of the two vice presidents of New Century Software, a man in his early 40s.

"The listing of the company, we will definitely do it beautifully, to the satisfaction of the chairman and all shareholders."

Then came Wayne Jim, the other vice president of the company, a little younger than Hank Randolph, in his late twenties.

"The three of you are responsible for this matter together, I am relieved."

Lin Baicheng nodded slightly, glanced at the group of executives, and said in a deep voice: "I think everyone here knows that the company's incentive shares to the management account for 5% of the company's total shares, and now only two thousandths of the company's shares are awarded. It’s just left and right, and there are still almost 24 times the equity that has not been motivated.”

"This time the company is listed, it will definitely take out a part of the shares to distribute to everyone in the company, as an equity incentive, so that everyone can share the dividends brought by the company's listing."

"However, the company is not a charity, and will not give away shares to everyone for no reason. How much each person can get depends on how much you contribute to the company."

"The more capable the person, the more equity he can get; the more serious the person who works, the more equity he can get; the greater the contribution to the company, the more equity he can get."

"I hope you can seize this opportunity and make achievements far beyond the past before the company's listing, so that the company can have a higher valuation when it goes public, and the company can also grant more awards based on your contributions. Equity."

"If you want to get more, then work hard and make achievements."

"This is a rare opportunity. Whether you can get equity equivalent to the salary of decades of work, and whether you can make your wealth and freedom for the rest of your life depends on your own abilities."

"If you work hard now, you will enjoy long-term enjoyment in the future, so why not work hard?"

Lin Baicheng is not painting cakes, not pouring chicken soup for the soul, what he said can be realized, and it is because of this that he is attractive.

Many executives blushed with excitement from Lin Baicheng's words, full of fighting spirit, and recalled the wonderful life after obtaining a large amount of incentive equity.

"That's the end of the meeting, Bella, Randolph, Jim, you three come to my office."

Lin Baicheng didn't say any more, and ended the meeting amidst the excitement of the executives.

Isabella, Hank Randolph, and Wayne Jim followed Lin Baicheng and went to his office.

Facing the three of them, Lin Baicheng ordered them to make more achievements during the period of the company's listing, and to maintain the company's stability, so that no bad news could be spread at the juncture of the company's listing.

The listing of the New Century Software Company is generally beneficial to Lin Baicheng. After all, the valuation of the company's listing will definitely rise sharply, and the value of the stocks in his hands will also rise sharply. Change into cash.

After all, New Century Software's office software market is limited, and its growth rate is not great. In addition, the Internet era has not yet arrived, and the ceiling of the company is still there. It is not a bad thing to let the company go public early and realize the shares.

After all that had to be said was said, Lin Baicheng left the New Century Software Company after eleven o'clock.

After lunch at noon, Lin Baicheng left Los Angeles for Silicon Valley.

Both Silicon Valley and New York are Lin Baicheng's destination, but one is on the east coast and the other is on the west coast.Both Silicon Valley and Los Angeles are in California, so of course Lin Baicheng went from Los Angeles to Silicon Valley first.

(End of this chapter)