Xiaomi to Provide over 110 Million Shares to Retain Talents
On Tuesday, Lei Jun, founder of Xiaomi, announced that he would issue a new stock incentive plan, awarding 119,650,000 shares to 122 outstanding employees including technical experts, the first batch of candidates of the Entrepreneur Program for a New Decade, as well as middle and senior managers.
“The Entrepreneur Program for a New Decade will select cadres who agree with Xiaomi‘s mission, vision and core values, and give them rewards similar to early entrepreneurs, encouraging everyone to start Xiaomi‘s journey for the new decade with entrepreneurial spirit and engagement,” Lei Jun said.
The plan is based on performance appraisal, and the stock maturity period will be as long as ten years. The shares will be attributed to the employees from April 1, 2022, to April 1, 2030, effectively binding personal income and company performance.
On Monday, Xiaomi‘s share price closed at HK $25.95. At this price, the 119,650,000 shares can be converted into HK $3.1 billion, an average of HK $25 million for each of the 122 chosen employees.
As a long-term market-oriented incentive mechanism, equity incentive plays an important role in fully mobilizing the enthusiasm, promoting the appreciation of enterprise assets and accelerating the development of enterprises.
According to the statistics of Securities Times, Xiaomi has issued 11 equity incentive plans since its listing in 2018.
The company has awarded more than 70.2 million shares to 3,904 employees, including young engineers, core staff and recent graduates, Xiaomi said in a statement on July 2. After the announcement, Lei Jun said on Weibo that Xiaomi implemented a “technology-oriented” strategy and took the recruitment, training and motivation of young engineers as one of its core tasks.
SEE ALSO: Xiaomi’s Founder Lei Jun to Give 600 Shares to Every Employee of Jinshan Group
In January this year, Xiaomi gave 16.8663 million shares to 2,405 employees. According to the company’s share price at that time — HK $33.90, the overall value was HK $572 million.