Lenovo CEO shares his $3 million bonus with his employees

lenovoyoga13

What would most CEOs do if they were granted extra $3 million on top of their multimillion dollar salaries? Chances are that they will spend the money on themselves while their employees keep wishing for a bonus. Well, it looks like it’s a little different at Lenovo.

According to Bloomberg, Yang Yuanqing, CEO of Lenovo, is sharing his $3.25 million bonus with his 10,000 employees around the world, and when you divide the amount, each employee will receive a windfall of about $325. While this may not be much to those of us in the U.S. and Canada, for those in China (and other developing nations) it’s more than their monthly salary. Remember, Foxconn reportedly only pays its workers about $243.97 per month.

To top it off, the bonus will go to those in manufacturing section who normally don’t receive bonuses or sales commission.

“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” says Lenovo’s Senior Vice President of Human Resources, Gina Qiao, and that’s why he “personally funded” the employees.

It certainly sets a good example to other CEOs, and perhaps this is something that all other companies can “copy” from Lenovo — they won’t have to worry about patent issues either, unless Apple tries to trademark this too.

[via The Verge, Bloomberg, and Image via Gizmag.com]

Share this post

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

4 comments

  1. Mr.Dave

    [@Mr.Dave] Sorry, I forgot to add that what the Lenovo CEO did is right on target. Shows he cares about the company and its people, he’s in it for the long haul, wants his employees to care also. Makes me want to consider their products in the future, they will probably have fewer quality issues and lower costs than most other companies.

  2. Mr.Dave

    [@Darcy] Sounds like he learned everything he needed at MBA school. He was highly effective. Made a bunch of money for himself and got a better job in the bargain.

    Although I don’t like his “style”, the people that hired him in the first place are just as much to blame.

    Until we hold top executives accountable for long-term sustainability, this will continue. And how many of you want your stocks to return 4% for the next 20 years, when you could instead invest in a company that returns 15% for the next year, after which you sell and catch the next shooting star, as the old one burns out.

  3. Mike

    [@Darcy] Sorry, but, that type of ineptitude is not limited to recent grads or MBA sorts. Sure, recent grads may have more to learn and may be immature in their judgment, but how many managers around do you really have respect for (such as the Lenovo CEO) or who otherwise manage well?

  4. Darcy

    Bravo! A lot of companies need to take a lesson from this. Henry Ford proved you can make more money in the long run by allowing your employees to earn more too. Sadly, economic history is not required for an MBA. They are big on teaching their latest theories of what might work, but don’t bother to teach what has been proven to work. A serious flaw IMO.

    There’s a small electrical company up north that hired a new CEO, graduate from one of these colleges. One of the things he decided is that it was a waste to spend money maintaining their infrastructure. Revenues did increase but eventually the quality of service had decreased so badly that the community actually passed a resolution capping their charges. The company could not increase prices until the service improved.

    Naturally the board of directors fired this idiot, but that backfired too. He used the profits shown during his tenure, and the loss of profit right after he was fired, to show how good his work is and become CEO of a larger company. Meanwhile the stockholders had to suffer losses until they managed to get the Infrastructure back up to standard. The companies losses exceeded the profits “moron” supposedly made the company.

    The truly unfortunate thing is, most MBA graduates are about this same level of competence. It’s no wonder our economy is down the tubes, between incompetence in Government and in Business it’s a wonder we have any economy left.