Generally, companies will issue rewards at the end of the year, but Tencent Holdings launched an announcement on the evening of November 25 on the Hong Kong Stock Exchange , and a blockbuster equity incentive plan was released.
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From the above figure, we can know that if Tencent’s closing price of 338.8 Hong Kong dollars per share on November 25, 9.552 billion total share capital, 3.24 trillion Hong Kong dollars total market value, 1% Means a market value of 32.4 billion Hong Kong dollars, and 2% means a market value of 64.8 billion Hong Kong dollars.
The effective period of future implementation of this share award plan is 15 years. How many Tencent employees will become billionaires? Let us wait for the answer to be revealed.
The announcement also shows that the board of directors will pay a reference amount from the resources of the company or any affiliated company to the account to purchase and/or subscribe for restricted shares for each selected participant. This means that the motivated employee does not need to spend money on to pay the consideration .
What is the significance and purpose of such a generous and large-scale incentive plan? In this regard, Tencent stated:
first, to recognize the contributions of selected participants and give them the opportunity to obtain the rights and interests of the company;
second, to encourage and retain these individuals to achieve the continuity of the group Operation and development;
third, provide them with additional incentives to achieve performance goals;
fourth, attract suitable employees for the further development of the group;
fifth, encourage selected participants to maximize value for the company In this way, both the selected participants and the company will benefit to achieve the goal of enhancing the value of the group, and the equity of the selected participants will be directly aligned with the equity of the company’s shareholders by owning shares.
Since 2007, it has insisted on offering equity incentives.
Tencent has been implementing employee equity incentives for a long time.Previously, Tencent had proposed employee equity incentive plans in 2007 and 2013, respectively, and proposed to grant no more than 2% and 3% of the total shares at that time. Every subsequent year, Tencent will grant employee share incentives.
In August 2008, Tencent's board of directors resolved to grant 1.0605 million new shares to 184 employees as incentive shares.
In July 2009, Tencent announced that it would issue 8,181,180 stock incentives to 1,250 employees.
In July 2010, Tencent’s board of directors decided to grant 3.66 million shares to motivate 1454 employees. This part of the shares accounted for approximately 0.2% of Tencent’s total share capital.
In August 2011, Tencent’s board of directors has resolved to grant a total of 4.045 million incentive shares to 2016 incentive targets.
In September 2012, Tencent granted 4.378 million bonus shares to 1,887 motivated objects by alloting new shares.
In July 2013, Tencent granted 4,058,700 bonus shares to 2,257 motivated objects by alloting new shares.
On November 13, 2013, Tencent announced a new employee equity incentive plan. The maximum limit has been increased from 2% of the issued share capital to 3%. According to the calculation of Tencent’s stock price at that time, the total value of 3% of the shares is 22.9 billion Hong Kong dollars. The plan has a 15-year validity period.
In July 2014, Tencent announced that it had issued approximately 19.52 million new shares for equity incentives for 4,696 employees.
In July 2015, Tencent announced that it had granted 21,756,700 new shares to 6,650 motivated objects.
In July 2016, Tencent announced that it had granted 5,621,500 new shares to 10,383 motivated objects.
On November 11, 2016, Tencent’s 18th anniversary, the company announced that it would grant 300 shares of Tencent’s shares to all regular employees who were still working on that day. On November 18, 2016, Tencent announced that it will implement this incentive commitment, granting a total of 8,227,200 new shares to 27,424 motivated objects.
In July 2017, Tencent announced that it would grant 17,870,600 new shares to 10,800 motivated objects.
In July 2018, Tencent announced that it had granted 17,207,700 new shares to 15,457 motivated objects.
In July 2019, Tencent announced that it had granted a total of 34,182,200 new shares to 23,271 motivated objects. Based on Tencent's closing price of HK$351 per share on July 8, 2019, the total value of the incentive shares issued this time is approximately HK$12 billion, and the per capita reward is approximately HK$515,000.
In general, the number of participants and shares granted to Tencent’s equity incentives have repeatedly hit record highs. Talents continue to join Tencent. In addition to being optimistic about Tencent's strength, there is also his equity incentive plan. Not only Tencent, Huawei and other companies have also provided equity incentives. It can be said that they can have today's talent team and achievements, and the equity incentive mechanism is indispensable.
Not every boss can share money like Ren Zhengfei and Ma Huateng , but every entrepreneur should have this pattern of giving money.
All companies grow from small to large. Only by giving away can you gain. The SME boss is willing to split the equity today. The next unicorn company may be created by you and a team of talents inspired by you.
stocks are distributed, talents are in;
stocks are distributed, resources are in;
stocks are distributed, capital is in; Big.
Equity incentives are an art and a compulsory course for bosses. If you learn this art, you will master the method of multiplying corporate value.
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