Wang Chuanfu 5.798 million, Zhu Huarong's annual salary rose by 22%... How much do you know the annual salary of the car company boss?

Recently, with the disclosure of the 2021 financial reports of major listed car companies, each of them has posted their own "family bottom". Among them, the most eye-catching project is necessarily the salary change of the "number one".

In the automotive industry was repeatedly tortured by "lack of core" and "lack of electricity", although the sales of some car companies were affected, and some car companies could rise against the trend, Kung Fu Automobile saw that the annual salary of the vast majority of "first-hand" had at least a nearly 20% increase.

For example, the two leaders of Volkswagen and GM, Diess and Bora, continued to increase their annual salaries last year, increasing by nearly 20%.

Volkswagen CEO Diessey's 2021 annual salary totaled 10.3 million euros, a sharp increase of nearly 20% from 2020, while General Motors last year awarded its CEO Mary Barra a total salary of $29.1 million, also up 23% from 2020.

Of course, these two CEOs were able to achieve eye-catching results in both turnover and profit growth last year despite the unprecedented challenges of corporate sales, and shareholders are naturally willing to give higher rewards.

However, there are "exceptions" to this.

For example, the data disclosed by Stellantis before shows that its CEO Tang Weishi got a salary of nearly 500 million yuan last year, which caused the dissatisfaction of many investors, feeling "outrageously high" and "shocking".

Also causing a lot of criticism because of the high salary is Gu Hongdi, president of Xiaopeng Automobile.

Earlier, in a ranking of the compensation of executives of domestic listed companies by the media, Gu Hongdi ranked first with an annual salary of 434 million yuan, crushing the executives of a large Number of Internet companies.

Although Xiaopeng Motors subsequently responded that this is a "misreading", more than 99.5% of the executive's public salary is the equity incentive accumulated for many years, not the income of a year, but Xiaopeng as a "technology company", such an annual salary is undoubtedly "crying" a large number of domestic executives who have also transformed to this traditional car company.

According to the data of Oriental Wealth Choice, among the companies that have disclosed the chairman's salary, the salary of BYD's chairman Wang Chuanfu, who dominates the list, is only 5.7839 million yuan. Of course, this does not include equity, dividends and other rewards, but the gap between them is actually obvious.

So, in addition to Wang Chuanfu, how much did the annual salary of the "number one" of other car companies rise last year? Recently, employee stock ownership plans like the Great Wall, Geely, and BYD that are also opened to achieve "common prosperity" have actually been effective?

(1) The "number one" of domestic car companies have raised salaries, except for Wei Jianjun?

Kung Fu Automobile has seen that among the major listed car companies that have recently disclosed their 2021 financial reports, the annual salary of basically every car company's "number one" has increased to varying degrees, and some of them have even increased by up to 40%.

Among the vehicle companies, the highest-paid chairman in 2021 is BYD chairman Wang Chuanfu, reaching 5.798 million yuan, up nearly 9% from 2020.

Although Zeng Qinghong, chairman of GAC Group, was paid the lowest salary last year, at 1.1944 million yuan, it also increased by nearly 14% compared with 2020.

Next up is Zhu Huarong, chairman and party secretary of Changan Automobile, who received a total pre-tax remuneration of 2.4748 million yuan from the company last year, up 22% from last year.

However, the annual salary increase of the above big guys is also no better than that of Chen Hong, chairman of SAIC Group.

According to SAIC's 2021 financial report, Chen Hong, chairman of SAIC Motor, earned an annual salary of 1.944 million yuan last year, a substantial increase of nearly 40% over 2020.

Compared with them, Wei Jianjun, chairman of Great Wall Motor, had a revenue that was basically the same as in 2020.

According to the data, Wei Jianjun got an annual salary of 5.7478 million yuan last year, while Great Wall Motor's 2020 financial report shows that Wei Jianjun's annual salary is 5.7394 million yuan, which is basically not much changed.

At the same time, it is worth noting that according to Great Wall Motor's 2021 annual profit distribution plan, the cash dividend per share will be 0.07 yuan from 02.5 yuan in 2020, and as the major shareholder holding Great Wall Motor, Wei Jianjun's dividends obtained last year must have decreased accordingly.

In addition, the annual salary of the "number one" of central enterprises such as Zhu Yanfeng and Xu Liuping is even more obvious.

According to a document released on the website of the State-owned Assets Supervision and Administration Commission of the State Council on December 31 last year, the annual salary of Xu Liuping, secretary of the party committee and chairman of China FAW Group Co., Ltd., is 863,300 yuan, while the annual salary of Zhu Yanfeng, chairman of Dongfeng Group Co., Ltd., is 794,500 yuan.

(2) The "talent war" behind the annual salary gap

In fact, some of the annual salaries of the "first-in-command" in the above-mentioned major listed car companies are not the highest in their own enterprises, and there will even be a phenomenon of "first-in-command" and "second-in-command" annual salaries being inverted.

BYD is a good example. The annual salaries of the four vice presidents like Li Ke, Luo Hongbin, Lian Yubo and He Long are higher than those of Wang Chuanfu. Among them, Li Ke, an entrepreneurial elder who joined BYD at the age of 26, received the highest annual salary of 8.173 million yuan for the company.

Similarly, SAIC motor and GAC group. Wang Xiaoqiu, president of SAIC, and several vice presidents and chief engineers have received annual salaries of hundreds of thousands or even nearly one million yuan more than Chen Hong; while Feng Xingya, general manager of GUANGZHOUC Group, is close to 3.17 million yuan, and the rest of the deputy general manager-level executives are basically more than 2.6 million yuan, more than twice that of Zeng Qinghong.

In the view of Kung Fu Automobile, this is undoubtedly a major performance of car companies attaching importance to talents. Especially at a time when the "talent war" is intensifying, many car companies are bound to pay correspondingly higher labor costs if they want to retain high-end talents.

To this end, like the previous methods of Internet companies that use high salaries and equity incentives to attract talents, we also see that they are being quoted by more and more traditional car companies.

For example, BYD's recent "0 yuan purchase" employee stock ownership plan is a significant manifestation of its talent strategy upgrade.

In fact, before BYD, people like Great Wall, Geely, Changan, GAC, etc. have launched corresponding equity incentive plans to try to promote changes in management mechanisms while further attracting more talents to create better performance for the company.

However, it is worth mentioning that although the revenue target is expected, the profit and stock price have declined, and it is likely to generate negative feedback in the secondary market, which are the risks to be faced in the employee stock ownership plan carried out by the above-mentioned car companies.

Like this year, the market value of many listed car companies has declined, among which Great Wall Motors has fallen from the previous 60 yuan to more than 20 yuan today, which is obviously a great challenge for the equity incentive plan it is implementing.

Some analysts pointed out that from the equity incentive schemes launched by many car companies at present, we can still see the shadow of "KPI assessment", which seems to be somewhat contrary to their willingness to "transform into a technology travel company".

Several new car-making forces led by Weilai are currently more popular in the "ORK target management" from Internet manufacturers, that is, they focus on the action process, emphasizing that the goals should be formulated from the bottom up, so as to stimulate the subordinates' sense of commitment to the goal, that is, self-drive. A top-down approach like "KPI assessment" is no longer in use.

In fact, at present, the talents to be grabbed between traditional car companies and new car manufacturers are more talents in software, which also happens to have a high degree of overlap with the talents needed by Internet manufacturers. To this end, if car companies want to successfully win these talents, they are bound to achieve transformation from the management mechanism and style.

Equity incentives are undoubtedly only one of the tools, and the key is for companies to find a way to stimulate vitality from the inside out, from the bottom up.

(3) Kung Fu shooting

There is no doubt that this movement of "common prosperity" between car companies obviously has a long way to go. However, in today's world where Chinese car companies collectively shout "globalization", whether it is a management mechanism or a compensation mechanism, perhaps they should take the lead in "integrating" it.

On the other hand, we should also see that on the one hand, the rising cost of employment, on the other hand, the increasingly fierce and changeable competitive situation, and the car companies that have adopted a series of incentive mechanisms are undoubtedly intended to promote the backbone of technology research and development and the formation of a community of interests with key talents such as senior management and enterprises to achieve longer-term sustainable development.

However, to truly achieve market-oriented operation, employee incentives, employee shareholding and other methods may still not be enough, and the management style of Internet companies cannot be implanted into car companies, but also can not only learn the "shape" and not the "soul".