Chapter 1083 (2/2)
However, as soon as Li Mu came up, he first put forward the core idea with the two people: ”this time we will not discuss enterprise development and strategic planning, but only discuss two issues: first, employees' cash reward; second, employees' option pool preparation.”
After the success of financing, the valuation of Muye technology will continue to rise soon. If there is significant strategic development in the next one to two years, IPO can be considered basically. Once the IPO of the company is successful, it is time for shareholders and employees of the company to harvest fruits. Now core employees have certain shares. Although the financing is slightly diluted, the overall market value is still low It's very gratifying, but it's just the core management personnel. Although ordinary employees have all kinds of perfect welfare benefits, the issue of options has not been prepared. Now it seems that it's time.Li Mu's proposition is that before the company goes public, it should prepare a certain share proportion as an option pool, and complete the distribution before going public. In this way, once the company goes public, the employees' options will be converted into the company's shares, and they can exercise their own rights and cash in the stock market.
Kong Lingyu and Lin Qingya have no opinions on Li Mu's option pool plan. They have worked with Li Mu for more than a year. Now they are billionaires with theoretical value of over 100 million. Their blind worship of Li Mu has almost reached a peak.
Therefore, Li Mu has made a plan. At present, he holds about 70% of the shares of Makino technology. After 10% of the shares are diluted, there is still about 65% left. Therefore, he is willing to take out 5% of the shares and charge them into the option pool. According to the current valuation, the overall value of the 5% is more than $1 billion 500 million.
Song Liang, Chen Ze and Xu Jiaming are all investors of Muye technology. If they have capital to come in, they can dilute equally. But Li Mu, the option pool, knows that he can't find them to carry forward his style. Lin Qingya and Kong Lingyu have very few shares in their hands. It's not fair for them to donate some more.
Therefore, Li Mucai decided to set up an option pool with 5% of his own shares, and then split the 5% shares into 50 million original shares in the form of 10 million original shares per percentage point. 50 million original shares are the employee option pool of the whole Muye technology for a period of time in the future.
After setting the total number of option pools, Li Mu asked Lin Qingya to take the lead in formulating an option allocation rule, which should be formulated according to the time of each employee's entry, the level in the company, the contribution in the company, KPI assessment, special contribution and other dimensions, to make clear how many corresponding options can be obtained if they meet different conditions, and when they are needed for option exercise Room.
Fifty million original shares are not a few, so Li Mu asked Lin Qingya: ”at present, there are only more than one thousand employees in our company, so you need to distribute the options in the option pool reasonably. You can't spend them all at once, just like saving, you need to have control.”
Lin Qingya nodded: ”don't worry, Mr. Li. I understand that.”
Li Mu said: ”my idea is that at this stage, we should first take 10% out of the option pool, that is, five million shares, and allocate them to more than one thousand of our current employees. When our employees break through three thousand people, we should take out another 10%, break through five thousand, and take out another 10%. Before we go public, we should take out another 20%, and split half of the option pool. The remaining 50% will be slow after the company goes public Slow distribution to new colleagues who join later. ”
Kong Lingyu, in the video conversation, said: ”boss, 5 million shares for one thousand people is very high. Now the value of each share is 33 dollars, which should be about 270 yuan. Even if one employee gets 1000 shares, it's more than 200000.”
Li Mu smiled and said: ”Lingyu, the value of options is not so calculated.”
Kong Lingyu and Lin Qingya in the video look at Li Mu.
Li Mu said with a smile: ”you see, at present, although our valuation is $33 billion, we split 5% of the shares into 50 million shares, each of which is indeed $33, but before we go public, options are not allowed to exercise. All employees want to cash out and wait for us to go public. After we go public, the value of this option must be far more than $33.”
Li Mu explained: ”although each original stock in the option pool is worth $33 at this stage, its actual value is not measured by money. You should remember that, according to our decision, the actual value of each original stock is one billionth of the actual value of the company.”
”If our future valuation continues to improve, before we go public, the market value may reach US $80 billion. After we go public, the market value of the company may exceed US $100 billion. At that time, it will be the window for employees to cash in their options. Each original stock of options is equal to the stock of the company with a value of US $1000. For example, If our stock price after listing is $20, the actual value of each original option is $1000. After our listing, each original share held by employees will be directly converted into 50 shares of the company. ”
Kong Lingyu nodded, laughed at himself, and said, ”boss, I'm from the wild road family. To be honest, I don't know how to play options, especially after listing.”
Li Mu said with a smile, ”it doesn't matter if you don't understand. Just do a good job of the business you should be responsible for. This part doesn't have to follow the rules of the industry. We can make it ourselves.”
Lin Qingya asked at this time: ”Mr. Li, if we divide 50% of the option pool, what should we do with the remaining 50% after we go public? Is it directly converted into shares of the company? ”
Li Mu nodded and said, ”yes, we give options to employees before listing, and then we directly give shares to employees after listing. In the future, as I just assumed, our total share capital after listing is 5 billion shares, and the remaining 2.5% in the option pool will directly become 125 million company shares. ”
Li Mu said: ”after we go public, in order to attract talents, we need to set a stock quota for middle and high-end talents. For example, when P7 technical talents come in, we will give 5000 shares of the company in addition to salary and treatment. 5000 shares can be worth tens or millions, but the exercise of these 5000 shares should be limited in time, in several years Exercise the power to bind talents with the company for a long time. ”Lin Qingya nodded his head and said: ”I understand Mr. Li, we will then limit the total exercise period to three years. After one year's formal employment, employees can have one exercise opportunity. The total exercise amount shall not exceed one third of the total number of shares; after two years, the exercise will be one third; after three years, the exercise will be the remaining one third.”
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PS: I'm too tired. I owe you a chapter tonight. I'll try to make it up tomorrow.