Tue, Sep 03, 2013 - Page 15 News List

Lenovo chief executive to share bonus with workers

Bloomberg

Lenovo Group Ltd (聯想), the world’s biggest maker of personal computers, said chief executive officer Yang Yuanqing (楊元慶) will share his bonus with employees for a second straight year after achieving record shipments and sales.

A pool of 10,000 workers will get payments this month to recognize their contributions, senior vice president of human resources Gina Qiao (喬健) said in a memo to some workers.

The memo was confirmed by spokesman Jeffrey Shafer, who said the total payment will be about US$3.25 million.

Lenovo posted revenue of US$34 billion and PC shipments of 52.4 million units in the 12 months ending on March 31 as the company gained market share and expanded sales of mobile devices, such as smartphones and tablets.

The 48-year-old Yang, who gave US$3 million from his bonus a year earlier, led the company to the top spot in the June quarter as it overtook Hewlett-Packard Co.

“This is quite rare, especially for a chairman of a Chinese company, to use his personal money as a bonus to reward employees,” Barclays PLC managing director Kirk Yang (楊應超) said.

Lenovo, which has headquarters in Beijing and Morrisville, North Carolina, rose 0.4 percent to HK$7.53 at 2:56pm yesterday in Hong Kong. The stock has climbed 7.3 percent this year, while the territory’s Hang Seng Index has dropped 2.4 percent.

“This payment is personally funded by Yuanqing,” Qiao said in the memo. “He believes that he has the responsibility as an owner of the company, and the opportunity as our leader, to ensure all of our employees understand the impact they have on building Lenovo.”

Yang’s award will be made to Lenovo staff in 20 countries, while about 85 percent of recipients are in China, Shafer said.

Yang spends time in both the Beijing and Morrisville offices, the spokesman said last year.

The average payment of about US$325 is almost equal to a month’s pay for a typical city worker in China.

The average annual wage of urban workers at private companies last year was 28,752 yuan (US$4,700), the Chinese National Bureau of Statistics said in May.

Yang was paid US$14.6 million last year, including a bonus of US$4.23 million and long-term incentive awards of US$8.94 million, according to the company’s annual report.

Yang holds about 744 million shares of Lenovo, or 7.1 percent of the company’s outstanding stock, as of the end of March, the report said.

Other executives to share their bonus include Oleg Deripaska of the world’s largest aluminum producer United Co Rusal, who gave his US$3 million bonus for last year to 120 employees, United Press International reported in July.

Simon Wolfson of Next PLC, the British clothing retailer, awarded his bonus of about US$3.7 million to 19,400 staff, the Telegraph reported in April.

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