Reborn: Billionaire in College

Chapter 140: Establishing the Board Option Pool ( words, please subscribe)

"After three days of competition, the top four finalists of the first Renren Campus Spokesperson Competition were announced."

"Let's welcome them!"

"They are Su Manli from Dongjiang University of Science and Technology, Leng Na from Dongjiang University of Finance and Economics, Ding Yuhan from Dongjiang University of Media, and Qin Peiwen from Wujiang University."

"We will hold the finals and awards ceremony at the Dongjiang University of Finance and Economics Basketball Hall in three days."

Finally, the top four of the image spokesperson competition were announced.

Whether it is Su Manli, Ding Yuhan or Qin Peiwen, it can be said that they all made it into the finals relying on their own strength. Leng Na from the University of Finance and Economics was recommended by Chen Pingjiang, otherwise there would be no explanation.

The CUFE had such support from everyone, the event was held on its campus, and most of the audience were students from the CUFE. But in the end, there were no contestants from our own school. Isn't that a slap in the face?
The closer the event gets to the end, the greater the impact of the game.

As the popularity continues to grow, countless new registered users come every day.

The topic discussion and the number of posts and replies have all hit new highs.

As soon as the top four were selected, they were invited by Hao Shaoping to conduct the second round of rehearsals.

After all, unlike talent shows like Super Girl, it is impossible to count votes on the spot in the spokesperson finals, which is too troublesome.

So the judges will give the scores instead.

Since the person being selected is Renren's campus image spokesperson, naturally Renren's opinion comes first.

In addition, there is an expert jury consisting of one hundred student representatives and school leaders from various schools.

Each of the four finalists needs to perform one program, and they cannot perform more than that. Hao Shaoping also arranged some other performances in the remaining time.

At the same time, many companies under Chen Pingjiang's name are undergoing a vigorous restructuring.

This restructuring involves organizational structure restructuring, debt restructuring, equity restructuring, personnel restructuring and management system restructuring.

This is the inevitable path that companies like Renren must take when they reach a certain stage of development.

More and more problems are gradually emerging, such as bloated staff, multiple jurisdictions, unclear responsibilities and rights, and unclear management rights.

"There is a clear trend of increasing the number of management levels. People keep talking about cross-departmental work, too many people attending too many meetings, and too many miscellaneous tasks. These are all problems."

Chen Pingjiang talked about it.

"Although Zhu Yuanlan is currently in charge of Xiao Chen BBQ under Zhizhen Catering, Miaocha has always lacked a person in charge and other operating personnel. More importantly, the financial personnel of the catering company are still handled by Shu Mang and Wan Yuqian. As Renren.com grows in size, the two of them obviously feel overwhelmed. It's time to fill in all the necessary personnel as soon as possible."

"Renren Waimai needs to be spun off from Renren.com and run as an independent company with relevant personnel. I will temporarily serve as the top leader."

"Renren's various departments need to be re-planned. Two new business divisions, Renren and social games, should be set up according to different functional positions. A database business group should be established to specifically serve Renren and Renren Waimai."

“Each company will set up an option pool with a portion of my shares.”

“The board of directors will be set up in each company and elected by the sole shareholder, Chen Pingjiang, which will also be the decision.”

"..."

Chen Pingjiang dropped one bomb after another. Many of these decisions had been communicated with many management levels in advance. Some middle-level managers who were unaware of this were directly stunned by the bombs.

As a result, companies such as Renren gradually moved away from workshop-style operations and became more formal.

The establishment of the option pool seems to divide the interests that originally belonged to Chen Pingjiang.

But the calculation is not that simple.

If you cannot offer high salaries in the early stages of your business but still want to attract high-level talent, using an option pool is a very good way to do so.

In addition, it is also necessary to compensate the management and backbone personnel for the entrepreneurial risks.

Apart from anything else, Miao Bingwei has almost become bald recently because of Chen Pingjiang's pressure. It can be seen that Miao has really put in a lot of effort.

The award is given.

In addition, it can give employees a sense of belonging, align the interests of employees with the sole shareholder Chen Pingjiang, and make everyone work together. It can solve the problem of long-term incentives and retain talents.

The establishment of the option pool makes various technical personnel who have just joined the company extremely excited.

It feels like the gap between Renren and other small businesses has suddenly widened.

Renren signed contracts with a total of 20 people, including Miao Bingwei, Wan Yuqian, Shu Mang, Li Xi, Gao Songbin, Zhuo Ling and others.

The number of shares corresponding to the options, the exercise price, the starting date for option calculation, the authorization period, the minimum effective period and the limitation period are clearly defined.

In other words, options are not obtained for free, but are subject to numerous restrictions and various conditions.

Currently, Renren's valuation is not high, so the exercise price is very low. Only if everyone works together to run the company well can the exercise price continue to rise.

The exercise period is divided into four years, with payments made monthly. That is to say, starting from the calculation start date specified in the contract, 1/48 of the option will be paid for every full month of work.

There is also a lock-up period. Employees cannot redeem their options within one year of joining the company. If they leave within one year, they will not have any options. After one year, they will receive 1/4 of the promised options in one lump sum, and 1/48 will be received every month thereafter.

As for the establishment of the board of directors, this is a mandatory requirement of the Company Law.

Chen Pingjiang was not prepared to treat the board of directors as the company's tonsils, which were dispensable.

If everyone works together to make the pie bigger, the biggest beneficiary will obviously be himself, so it is quite necessary to be able to mobilize the enthusiasm of senior management.

Everyone has different professional backgrounds, complementary knowledge and skills, and can analyze, discuss, debate, and even question from different perspectives, which can greatly improve the quality of decision-making.

There is no perfect individual, but there can be a perfect team.

Of course, Chen Pingjiang also left himself a veto power.

Whether it is the establishment of the board of directors, the option pool, or the adjustment of the company's organizational structure, all of them demonstrate Chen Pingjiang's determination and confidence, and also give a shot in the arm to all the middle and senior management present.

This makes them more optimistic about the company's future.

From then on, everyone became the "master" of the company rather than just an employee.

Most of the people here are college students, or like Miao Bingwei, they come from small companies. In fact, they have a very vague understanding of the concepts of boards of directors and option pools. They have seen them on TV and in novels, but have never experienced them personally. They are even a million miles away from them.

While everyone was excited, they couldn't help but feel a little inferior.

They actually know their own strengths and weaknesses very well. There are many people in the society who are more capable, educated and experienced than them. They think they are just lucky, caught up with the right time and got on the Renren ship early.

But as more and more people get on board, the pressure on each of them becomes greater and greater, as there will always be people with more experience, higher education and stronger abilities than them.

While enjoying rights, we must also assume obligations.

The establishment of a board of directors and an option pool in turn creates pressure on everyone present, urging them to continue learning, improving and working hard.

Chen Pingjiang went to the School of Industrial Management to find Kuang Minghong and asked him to introduce two old professors to participate in a series of decisions of Renren.

After taking into account their opinions, we made improvements and finally implemented it.

Renren's series of actions were so shocking to Kuang Minghong that he could not express it in words.

Most business leaders are in too high a position to be able to keenly perceive the problems of the company.

He did not expect that Chen Pingjiang was so experienced at such a young age, and that he could make drastic changes in the system. What was even more rare was that he took the initiative to set up a board of directors to "restrain" his own rights, making good use of the collective strength and listening to opinions from all levels.

The same goes for the option pool. In the absence of financing, Chen Pingjiang could have turned a blind eye, but he took the initiative to take out 10% of his equity to establish an option pool. This open-mindedness and lofty ambition are also not comparable to ordinary companies.

After doing all this, Chen Pingjiang finally breathed a sigh of relief and prepared to take part in the upcoming Renren Campus Image Spokesperson Competition.

After pruning the branches and leaves, he hopes that Renren, Renren Waimai and the catering company will be able to embark on the fast track of development, and has also prepared internal responses in advance for subsequent financing.

　This chapter will be a bit dry, but what needs to be explained needs to be explained.

　　
　
(End of this chapter)