Global Monopoly of Technology

"Luo Sheng is a very interesting young man. I did some research specially. In terms of employee incentives, Bluestar Technology, which he founded, has referenced a lot of the virtual equity incentive system of our company to a certain extent. It’s a little improvement, and it’s quite radical, and you only need to look at their incentive plan to find that it gives the impression that he has 200% confidence in the future profitability of Bluestar Technology.”

One of the senior executives who attended the meeting said that after a while, he added: "What's more interesting is that his newly founded Cote d'Azur technology company is even more thorough, almost following our company's incentive template. But there is still a difference, whether it is Bluestar Technology Company or Azure Coast Technology Company, its shareholding structure fully reveals Luo Sheng's desire for control."

At this time, Mr. Ren, who was present at the meeting, said with a smile: "This is a good thing, we should be happy, it shows that our model has not only been recognized, but also imitated. More valuable."

It is worth mentioning that Huawei's model is not only domestic, but can be said to be an alternative in the world. Huawei has tens of thousands of shareholders, and these shareholders are Huawei employees. It's hard to go public.

The executive who just spoke also said: "In the aspect of equity incentives, the similarity of my company is almost the same. Luo Sheng took out the equity of the Cote d'Azur company for employee incentives, and shared the company's residual value with all employees. "

In the design of the equity structure of Azure Coast Technology Company, Luo Sheng adopted the same-share different rights and concerted action agreement, and finally also has a veto power.

Luo Sheng controls the board of directors through a one-vote veto, and controls the nomination rights of the company's board of directors through a concerted action agreement.

There are a series of special agreements in the company's articles of association and shareholder agreement. One of them is a special agreement to ensure Luo Sheng's absolute control, the removal of Luo Sheng's one-vote veto and the concerted action agreement requires more than 85% of the company's shareholders to vote. effective.

That would mean that Luo Sheng lost control of the company. There is only one situation where he voluntarily gives up, otherwise he has absolute control.

The Côte d'Azur company, which was established in March to the present, carried out a rights issue in July, and 1,285 Côte d'Azur employees shared 0.5% of the equity.

And the 0.5% that is distributed is still dividend rights, not real shares.

In the future, there will definitely be more employees who have contributed to the company to get the opportunity to allot shares and share the residual value of the company together.

For the equity incentives of Côte d’Azur, employees below the P6 level are not eligible for allotment, and can only receive bonuses. Only at the P6 level can they be eligible for allotment, and the allotted shares are virtual shares with dividend rights only, not real shares.

Employees are only eligible to convert virtual shares into real shares when they reach the P8 level. Whether it is virtual shares or real shares, it is not a direct reward and needs to be purchased.

If an employee wants to convert the virtual shares in his hand into real shares, he needs to meet two conditions: the first condition is that he has to strive for P8 level, and the second condition is a five-year lock-up period, after which the lock-up period can be completed. Buy.

Only when it is converted into real shares, it is a serious company shareholder, and the equity held is a virtual share, which is equivalent to a quasi-shareholder.

In this way, a core backbone employee can basically be locked in the company for about 15 years. Naturally, this employee incentive system is still from the hands of Qin Weimu.

If you want an aspiring and powerful elite to follow you for a lifetime, and spend almost a lifetime of hard work and effort to share the same fate with the company, then you must give equal or even premium benefits in exchange for it, otherwise it will be a hooligan. , and will certainly not be able to gather real talents.

Therefore, Luo Sheng wants to take out shares to share the residual value with these elites, only the real interests are bundled,

Only in a true sense can a group of people be deeply tied to the chariot of the Côte d'Azur and dash forward bravely.

If Hua Wei had not had such a special incentive system, he might not have gotten to where he is today, so that he would be suppressed by the old and the United States with the power of the country in the future.

The company has produced dozens of core patents less than ten months after its establishment. In addition to Luo Sheng's important role in it, it is also closely related to the frantic struggle of a group of engineers under his command. Otherwise, only With Luo Sheng's own strength, no matter how good he is, getting three core patents within ten months is already the sky.

No matter how talented he is, his energy is also limited. He has 24 hours a day like everyone else. Luo Sheng doesn’t want to work day and night and only sleep for 4 hours a day. He still wants to live a few more years. hundreds of years or more.

Today, Wah has discovered that several patents of Côte d’Azur in communication baseband are highly consistent with Wah’s established direction. This is not the most important thing. What really makes this communication giant pay so much attention is that Côte d’Azur wants to enter the mobile market. end consumer business.

What Luo Sheng wants to do with a mobile phone is a clear card, and there is no need to guess. The commercial gambling agreement with Qualcomm has been exposed.

This year, Wah Wei is at an extremely critical node, and it has paid more and more attention to the mobile terminal business. Previously, Wah Wei was mainly in the router part of the communication terminal. Since 2003, it has begun to pay attention to the mobile terminal communication service and server. .

Côte d'Azur is now very low-key and has been silently engaged in research and development, but Hua Wei attaches great importance to it, whether it is the innovative patented technology it already holds, or the Côte d'Azur model.

It is simply a natural partner, or... a strong competitor.

It has to be said that Hua Wei is indeed strong at the strategic level. At this time, he has begun to notice the Cote d'Azur, and has already started internal discussions about potential competitors.

The focus of the current internal discussion is to choose the plan of competition or the plan of cooperation.

"Let's cooperate." Xu Zhijun said: "I suggest that cooperation does not mean that there is no confidence to compete with the Côte d'Azur, but that the strategic level should be placed in a global perspective. The ICT sector has always been dominated by foreigners. When we were fighting, we had put forward the hypothesis of 'extreme survival' last year."

Mr. Ren nodded but did not express his opinion, and another executive who attended the meeting agreed and said: "I also agree with cooperation, the overall potential external pressure is greater than the internal competition, if foreigners come to us in the future, there is no need to fight , it's all over."

At this time, Mr. Ren said: "Yes, now we should twist it into a bundle, unite the backbone to deal with stronger opponents, and have more combat effectiveness. As for the potential internal competition that may break out in the future, that is the future, and that is also the case. There has to be a future.”

"Having said that, what if it's our wishful thinking? The key is what Luo Sheng thinks? Is he willing to cooperate?" said an executive who attended the meeting.

For a time, everyone didn't dare to make a speech, Xu Zhijun said with a smile: "A living person can still be suffocated by urine, and cooperation can't be based on guesswork. See and talk to know whether it will work or not, then I will go to a meeting. Come to Sioux City to visit the legendary 'Son of the Internet'."

Xu Zhijun's proposal was soon unanimously approved, and the matter was finalized.

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