In addition to equity compensation, Xiaomi did not pay any cash remuneration to Lei Jun in 2018.
Reporter 丨 Jiao Likun
Cover image 丨 Jiao Likun
Lei Jun, chairman of Xiaomi Group, has made headlines in the past two days, and the "rocket" that helped him make headlines is the "tens of billions of annual salary" controversy. In this regard, Xiaomi urgently spoke out: in addition to equity compensation, the company did not issue any cash remuneration to Lei Jun in 2018, and the equity incentives obtained by Lei Jun before listing will be donated to charity.
In this regard, netizens also broke their hearts: Lei Zong drank the northwest wind this year.
Lei Jun was "busy in vain" last year?
Recently, Xiaomi released its 2018 annual report, and in 2018, Xiaomi's revenue was 174.9 billion yuan, and its adjusted net profit was 8.6 billion yuan.
The report also mentioned that Xiaomi's total compensation expenditure in 2018 was 17.11 billion yuan, which was a significant increase of 322% compared with 4.05 billion yuan in 2017. The annual report discloses that xiaomi's five highest-paid people in 2018: the highest one is between HK$150 million and HK$15 billion, and the remaining four are between HK$30 million and HK$100 million. The "highest paid person" is Lei Jun, and it is estimated that Lei Jun's annual salary in 2018 is at least 9.874 billion yuan.
In stark contrast, the average salary of Xiaomi employees in 2018 was about 210,000 yuan. According to the annual report, Xiaomi had 16683 full-time employees in 2018, of which 5966 employees held share-based incentives. Looking at only the salary, salary and bonus, the total amount of Xiaomi in 2018 was 3.565 billion yuan, which means that the average salary of employees is about 210,000 yuan. At the same time, the annual report disclosed that as of December 31, 2018, Xiaomi awarded group employees a total cost of about RMB2.359 billion in share-based incentives, that is, nearly RMB400,000 per employee received share awards.
After this news was exposed, it triggered the onlookers of netizens, and "Lei Jun's annual salary exceeds half of Xiaomi's total salary" led to a heated discussion. In this regard, Xu Jieyun, general manager of the public relations department of Xiaomi Group, responded on Weibo that this is a 2% equity reward given by the board of directors before the listing, which is a practice in the industry, and the proportion is not high in the same industry, and this part of the equity reward has not been realized. "The figures here are just calculated according to the value of the corresponding equity."
In fact, Xiaomi announced before its listing that it would grant Lei Jun 9.8 billion yuan of equity incentives. In fact, at present, Lei Jun has not taken away this part of the reward. On January 9 this year, on the day when Xiaomi's options were lifted for half a year after its listing, Lei Jun submitted a letter of commitment that the shares he held would continue to be locked for a year, and the equity incentives obtained before the listing would be donated to charity.
In response to various speculations in the market, on the morning of April 10, Xiaomi Group issued an announcement in response to the issue of executive compensation. According to the announcement, Lei Jun's compensation in 2018 was mainly due to the company's one-time issuance of 636.6 million Class B ordinary shares (after the split of shares) to entities controlled by Lei Jun on April 2, 2018 as a return for its contribution to the company. As of the date of the announcement, the shares were still held by entities controlled by Lei Jun and had not been sold. In addition to equity compensation, the company did not pay any cash remuneration to Lei Jun in 2018.
Lei Jun bureau gas, when will Xiaomi be "thick"?
On July 9 last year, Xiaomi was listed on the main board of the Hong Kong Stock Exchange, becoming the first listed company to adopt a different voting rights structure after the reform of the listing system of the Hong Kong Stock Exchange. Xiaomi's IPO price was HK$17 per share, and as of press time, Xiaomi's share price was quoted at HK$11.86 per share.
It's worth noting that "investors who bought company stock on the first day earned doubled." It was the "promise" that Lei Jun had given. However, for now only, Lei Jun's commitment not only failed to stimulate Xiaomi's stock price to strengthen, but was "crushed" by Xiaomi's "all the way down" downward trend.
The financial reporter once visited the chain store opposite Xiaomi's headquarters. An intermediary said that before the listing, many Xiaomi employees ran to the nearby high-end community Oak Bay to see the house, but after the listing, the stock was completely trapped, and no one came back to buy.
The stock price is not as beautiful as imagined, and Xiaomi's performance in terms of shipments is not excellent. According to the latest quarterly mobile phone tracking report released by market research agency IDC, in the fourth quarter of 2018, The Chinese smartphone market shipped about 103 million units. Among them, domestic brands Huawei, OPPO and vivo achieved year-on-year growth in shipments in China. Huawei ranked first in China's mobile phone shipments, with a market share of 29%, a year-on-year jump of 23.3%; OPPO and vivo ranked second and third, respectively, with market shares of 19.6% and 18.8%, respectively, with little year-on-year fluctuation. Apple and millet shipments fell sharply year-on-year. Apple's mobile phone shipments in China plummeted by 20%, with a market share of 11.5%, ranking fourth; Xiaomi's shipments also fell sharply by 34.9%, with a market share of 10.0%, ranking fifth.
Of course, Xiaomi also has achievements. On April 9, at the 9th anniversary carnival of Xiaomi, Lei Jun said that at the beginning of the business, we were very low-key, and the most important thing in retrospect is that we had different ideas from others at the beginning of the establishment of Xiaomi, and we wanted to make good products that touched people's hearts. In the past nine years, our biggest change has been the elimination of China's copycat mobile phones.
It is undeniable that Xiaomi has brought many surprises along the way, and the road ahead is still very long, and I hope that the future will be as Lei said: Xiaomi, tomorrow will be better!
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Editor 丨Fu Haohuan