Yesterday, Xiaomi Group issued an announcement stating that the company’s board of directors granted a total of 70.232 million shares to 3,904 employees of the group in accordance with the share award plan.
Who Did Get Xiaomi Group Shares?
According to Xiaomi, the group’s outstanding young engineers, fresh graduates and outstanding employees in the core positions of the team, and outstanding engineers of the annual technology award have all received corresponding equity incentives.
By the way, yesterday, the closing price of Xiaomi’s stock was 26.2 Hong Kong dollars ($3.37). Based on this calculation, Xiaomi has given a total of 1.84 billion Hong Kong dollars of stock rewards to employees. That is approximately $0.24 billion. This equals to an average of 470,000 Hong Kong dollars (approximately $60,523) per capita.
Xiaomi specifically mentioned that among the above employees, about 700 outstanding young engineers have been selected for Xiaomi’s latest talent incentive program “Young Engineer Incentive Program.” They will receive a total of 16.042 million shares. After a simple calculation, the value of the shares issued per capita of these 700 young engineers is 600,000 Hong Kong dollars (about $77,263).
The young engineer incentive plan is personally led by Lei Jun, the founder, chairman and CEO of Xiaomi Group. The latter selected a total of nearly 700 outstanding young engineers into the first batch of lists. They are mainly R&D engineers, testers, product managers, designers, etc. The spheres they are from cover chip research and development, machine learning and algorithms, software and hardware development, cloud computing, system architecture, image processing, and materials. There are many front-line positions in technology, operating system, video training, interactive design, etc. The youngest selected employee is only 24 years old.
Xiaomi stated that this incentive plan will be extended to the entire group in the future. Also, it will continue to be a long-term talent incentive project for all young engineers throughout the company.
This Is Not New
The Paper reporter noted that Xiaomi has granted share awards according to the share award plan many times since its listing, five times in 2020 alone. The most recent case occurred on October 10, 2020. At that time, 579 people got a total of 10,672,400 shares. At that time, Xiaomi’s share price was 20.95 Hong Kong dollars ($2.7). And the overall value of the shares granted was 220 million Hong Kong dollars ($28.33 million).
Share awards are one of the common ways to motivate employees in listed companies. Not long ago, Gree Electric, an old friend of Xiaomi, released a draft of its employee stock ownership plan. It involved 12,000 employees.