Reborn as a tycoon in Hong Kong

The second day of the party, Monday.

Lin Baicheng did not leave Los Angeles as planned, but went to New Century Software Company.

"Chairman!"

Lin Baicheng came over without prior notice, so after Isabella learned about Lin Baicheng's arrival from her secretary, she came to Lin Baicheng's chairman's office with an uneasy feeling. 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 visited New Century Software Company a while ago. He already knows about the company's recent development and has visited various departments.

Therefore, Lin Baicheng did not gossip, but said directly: "I held a party last night, and some shareholders of New Century Software attended. They told me one thing at that time, saying that they hoped to make the company more successful in the near future. Start preparations for listing.”

"I thought about it last night and decided that it would be better 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 good performance and going public to make money is the right way.

As for the issue that the database and operating system businesses are undervalued, after thinking about it, he found that these two markets are very dependent on computers. Before the computer market reaches a certain level, there will not be much market at all.

In the long run, these two markets will definitely have great potential, but New Century Software Company cannot 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 spin off these two businesses, and just used the funds of New Century Software Company to support these two businesses, without Lin Baicheng spending any 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 money to give up his shares and go public to share profits. He cannot be a monopoly.

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

Isabella immediately responded that it would not be a bad thing for her to go public. Being the president of a listed company can make her more famous. The higher the market value of the company, the higher the social status. In addition, the incentive equity she received 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 the relevant work, but you must keep a close eye and not let Goldman Sachs and Citigroup take advantage."

The higher the P/E ratio at the time of listing, the greater the benefit to Lin Baicheng, the major shareholder. On the other hand, Goldman Sachs and Citigroup, as underwriters, can sell the stock at a low price. The more the stock price rises after the listing, the more Goldman Sachs and Citigroup will make.

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

Therefore, Lin Baicheng does not need to worry too much, but he still has to be on guard against these two families joining forces to harm his interests. Although this possibility is very low, it is not impossible.

Isabella said aloud: "Chairman, actually we can choose another underwriter as a third party, so we don't have to worry."

"We can consider it and we'll discuss it later."

Lin Baicheng did not refuse, and having one more underwriter would not hurt the listed company.

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

Isabella was shocked when she heard this, but she said calmly on the surface: "Chairman, the company has developed very well under my leadership. If the president is suddenly changed, it will inevitably cause turmoil, especially when the company is about to go public. At this point. In order for the company to be successfully listed, I think all shareholders should believe in my ability instead of taking risks and finding someone to replace me."

"Bella, you are mine, and I will definitely support you. The candidate for president will definitely not be changed. I am the largest shareholder of the company."

Lin Baicheng expressed his stance, giving Isabella reassurance and letting her know that he, Lin Baicheng, supported her.

"Thank you, Chairman, I will 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 valued at hundreds of millions of dollars.

Now, it is with the support of Lin Baicheng that she can secure her position as 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 make I know I was right to support you.”

Lin Baicheng's support for Isabella is not unlimited. If Isabella does not perform better, he will definitely hesitate and even replace Isabella in the end.

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

Isabella nodded heavily. She knew very well that she could not always get the support of the big boss. She had to make performance that convinced the shareholders. Super high performance and the support of the big boss were the foundation of her career.

"I believe you."

Lin Baicheng nodded, and then said: "Go and notify the other senior executives of the company and ask them to go to the conference room for a meeting at half past ten. I have something to say to them."

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

Isabella stood up.

"Go and do your work."

Lin Baicheng waved his hand and walked towards the desk.

While Lin Baicheng was busy, the time came to half past ten, and he took Catherine to the conference room.

"Chairman!"

In the conference room, all the senior executives arrived. When they saw Lin Baicheng come in, they all immediately stood up and said hello.

"Everyone, sit down."

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

New Century Software Company is now a large company, with a large number of employees and executives. There are more than a dozen executives qualified to participate in this meeting, and they are not the big cats and kittens that were there when the meeting was first established. three.

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

Lin Baicheng, who looked around at the senior executives, paused, and then continued: "My shareholders and I have decided to launch the company's listing plan, and the company will prepare for listing."

"Is it going to be listed?" "So soon?" "It's great to be listed!".

Hearing this, the executives couldn't help but discuss quietly, and everyone was very happy.

For corporate executives, there are many benefits to listing a company. First of all, the size of the company will be greatly increased due to the listing, and the social influence will be greatly enhanced; secondly, there are equity incentives. Whenever a company is listed, executives will receive a certain amount of incentive equity.

To put it simply, the incentive equity received by executives is equivalent to at least 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 for a while. After their voices gradually became quieter, he said: "Now that the company is ready to go public, everyone in the company, including you, will be able to get a certain number of original shares."

The executives were even happier after hearing this.

Lin Baicheng looked at Isabella: "Bella, you are the president of the company. You and the two vice presidents will work out an equity incentive and exercise price plan, and hand it over to me for review. This matter must be done before It should be completed before the company starts to go public, so that everyone in the company can share in the dividends of the company’s listing.”

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 limit expires. This is impossible.

If this is the case, and the employee gets the stock, sells it half a year after the company goes public, and gets a salary equivalent to at least several years, then how much does the employee have to think about continuing to work in the company?

How can those executives who have received salaries for more than ten years or even decades at once continue to work with peace of mind?

Therefore, under the equity incentive plan, the stocks received by executives and employees have an exercise price. After receiving the stocks, they cannot reduce their holdings within the specified time for the company's listing, which is usually no less than three to five years.

The employee's exercise price is usually much lower than the stock issuance price. Each company will be different. The exercise price may be only 20%, 10% or lower of the issue price.

Taking the exercise price of 10% as an example, if an employee can get shares equivalent to the issue price of US$10,000 when the company goes public, then the employee can get stocks worth US$10,000 for only US$1,000, which is equivalent to nine times profit.

But in order to get nine times the profits, employees must continue to work in the company for three to five years, and they must work hard to ensure the company develops smoothly and the stock price rises. Only in this way can employees get nine times or even more benefits.

If everyone doesn't do their job properly, causing the company's development to fail and the stock price to plummet, profits will be significantly reduced, which is equivalent to harming one's own interests.

Moreover, employees cannot resign from the company before the sales restriction expires. If they voluntarily resign, they can only take away the US$1,000 when exercising the options. As for the shares, they will be recovered by the company.

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

Therefore, it is very important to formulate a good equity incentive and exercise price plan. It is related to the interests of employees and the company and cannot be sloppy.

"Chairman, don't worry, we will assist President Kent with relevant work."

The speaker was Hank Randolph, one of the two vice presidents of New Age Software, a man in his early forties.

"We will definitely handle the listing of the company beautifully and satisfy the chairman and shareholders."

The next person to speak up was Wayne Jim, another vice president of the company, slightly younger than Hank Randolph, approaching forty.

"The three of you are responsible for this together, I'm relieved."

Lin Baicheng nodded slightly, glanced at the senior executives, and said in a deep voice: "I want everyone here to know that the company's incentive shares for management account for 5% of the company's total shares, and now only two thousandths of them have been awarded. It’s only about 24 times the equity, and there are still about 24 times the equity that has not been incentivized.”

"This time the company goes public, a part of the shares will definitely be distributed 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 the amount of contribution you make to the company."

“The more capable a person is, the more equity they can get; the more serious a person works, the more equity they can get; and the person who contributes more to the company, the more equity they can get.”

"I hope you can seize this opportunity and achieve greater results than before before the company goes public, so that the company can have a higher valuation when it goes public, and the company can also grant more rewards based on your contributions. Equity.”

“If you want to get more, work hard and achieve results.”

"This is a rare opportunity. Whether you can get equity equivalent to the salary you have worked for decades, and whether you can make yourself wealthy and free for the rest of your life, depends on your own ability."

"If you work hard now, you can enjoy it in the long term in the future, so why not work hard?"

Lin Baicheng is not painting a cake or pouring chicken soup for the soul. What he says is achievable, and that is why it is attractive.

Many executives flushed with excitement because of Lin Baicheng's words, and were full of fighting spirit. They thought about the good life after receiving a large amount of incentive equity.

"The meeting ends here. Bella, Randolph, Jim, you three come to my office."

Lin Baicheng said no more and ended the meeting amidst the excitement of the executives.

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

To the three of them, Lin Baicheng gave some instructions again, asking them to make more achievements during the company's listing period, maintain the company's stability, and not let any bad news come out when the company is listed.

The listing of New Century Software Company is generally beneficial to Lin Baicheng. After all, the company's listing valuation will definitely rise sharply, and the value of the stocks in his hands will also rise sharply. At the same time, these stocks will also slowly be able to be sold after the sales restriction expires. Change it to cash.

After all, the office software market of New Century Software Company is limited and its growth is not great. In addition, the Internet era has not yet arrived, and the ceiling of the company is there. It is not a bad thing to list the company early and liquidate the shares.

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

After lunch at noon, Lin Baicheng left Los Angeles and headed to Silicon Valley.

Lin Baicheng was going to both Silicon Valley and New York, but one was on the east coast and the other on the west coast. Silicon Valley and Los Angeles are both in California, so of course Lin Baicheng went to Silicon Valley from Los Angeles first.