Startup, “I’m MT” equity incentive behind the success story


cloud network hunting note: “I’m MT” is a month nearly hundred million water cow force startups, CEO Mr. Xing in recently a communication meeting, share their business to the company now has a certain scale of some of the original management methods, at the meeting, Mr. Xing put forward the idea of using stepwise equity to retain talent.

the author: bandits investment diary

a lot of people ask a bandit investment company to see what, the most investors would say watch industry, the direction, the most important team, bandits, too.

in fact most of the time, a good team in the direction of the industry to, didn’t get good grades. Bandits in the previous article mentioned equity allocation, incentive, etc., because the bandits have long argued that a modern company of one of the most important thing to do is to figure out, how to arouse the enthusiasm of all people, release more personal productivity. A means of equity and options are the most important!

my name is MT is a month nearly hundred million water cow force of the start-up, CEO Mr. Xing in recently a communication meeting, share their business to the company now has a certain scale of some of the original management methods, at the meeting, Mr. Xing put forward the idea of using stepwise equity to retain talent.

three years, from a dozen people, expanding to 400 people, Mr. Xing never panic. Buddy good state of mind, like Lao tze to son to treat their own businesses. One word, it is that ownership structure brings the stability of the cascade, flexible and smooth communication mechanism. In a word, how to play this lever, Mr. Xing is some special skills.

treated as CEO, company, more is to realize that maybe you really not a captain. Enterprise is the ship, you may be on board a parts, ship themselves go fast, walk fast to ship, need to have more people come in. Find more cattle, equity award is the best way, because equity award is not only a given his rights management enterprise, is also awarded the management responsibility of the enterprise.

let employees holding equity beaten, clearing management enterprise
We say, founders of equity point of view, whether the decision of the company in the future can go better. I like to use his father to the child’s point of view, to the enterprise CEO to enterprise’s state of mind.

father is brought up, the whole process is full of hardships and emotion, founder of my own business. , the father for the children have a greater development in the future, will let the child go out and follow the teacher, learning with friends, and sociology; The ceos of companies, whether can do this place to let go to let go, let the enterprise growth with more people? Not all entrepreneurs are can do it, but I always insist on the idea, I think, enterprise development to a certain extent, is must let more person with ability to manage.

no one will discipline the child for you, for no reason, so we call “teacher” to “teacher”, is to “teacher” to a recognised birthright, teacher’s rights and obligations have to discipline a child. The companies? We also want to have the ability to a birthright to management, the role is the most important part of the equity, and the voice is different because the stakes, the different levels, and treatment.

since the day I business, our company founder holding brother is divided into two levels and partners. Founder is that help to business with me, leaving children and a wife, boldly go to Beijing the dial, this help a brother’s equity share relatively more. Partner, is the enterprise’s future, quit your other job, midway came to our company of the people, their ability is outstanding, just cannot long period retain their wages, so they can through their own performance gradually make the company’s equity, at the same time, it would increase the cost of their departure. Now, have a stake in brothers, has more than 20. Founder and gang, this group together constitute the cornerstone of our company, the stability is very good. This level of people, leaving the company so far, our company only two partners.

in order to more attracting talent, the partner to set aside more space, we have to 10 times the price of borrowing money to recycle the angel investment in equity and redistribution. Now we have part of the option pool, is for those new executives.

some friends might say, man, you give partner at stake so little, also is gross? Can’t keep people? In fact, the equity share are less, but really want to sell, or value, a lot of money. We think, now 360, tencent no equity can do is inspiring, but we have here, it is totally different two concepts.

use communication mechanism to strengthen the rights and obligations of shareholding employees
I am here to correct a common common-sense error, was awarded the stake is not to say that you have about your equity gives the go, the key is through the process of granting, combination mechanism, endowed with the rights and responsibilities of staff management enterprise. This is the most important I learned in lenovo star lesson.

, for example, each week on Saturday morning at ten o ‘clock, we have company partner meeting, rain or shine. In this meeting, we will put the company all staff, performance appraisal content, research and development, and so on all at once. All partners level above all employees have a right to know of the enterprise important things, make them feel that the company is their, they have to tube, they have to. Actually early, the brothers also don’t recognize this stock rights, but through this mechanism itself, they feel it is not just a question of money, or an identity, is an honor, to strive for to get. We will, and the second is the annual executive seminar, twice a year, Spring Festival at a time, one at eleven. All executives have equal participation and voting rights, let them feel myself more and more obvious.

in addition to meeting the mechanism, our company’s employees are classified, different levels of different treatment. For example, seven employees, the company offer you 200 pieces of CheWeiFei; 8 all expenses; Level 9 gas at all, not only maintenance charges will be given you; The ten steps, you can at 20000 a car. These are the real benefits, absolutely not the case.

from start-up to today, although only a little more than three years, the company now has more than 400 people, but the company each level of the people all know what you want to do, or a certain level of employees know where is the goal, the whole company is in a relatively stable state.

couldn’t keep up with the pace of corporate entrepreneurship, brother?
With the development of the enterprise, the company will come in more and more and more person with ability. Maybe one day, including the founder, the ability of many of the early entrepreneurial brothers together to keep pace with the development of enterprises. Technically, it is very difficult for some people may do for the rest of your life do technical 7 and 8. But some new colleagues, grade nine, what can I do? Follow us through all the brothers lost, how to do? They found themselves for the company no longer important, ability not only has a problem, the help brothers attitude also gave an issue, how to do?

brother start-up phase, after the company development, indeed from the ability is no longer able to meet the needs of enterprise development. Most of the time, because the company veteran move, a several radish pit?

we use the method, is to make the dial to spreading the culture of the enterprise. This is dial the elders, but the enterprise culture, enterprise genes, they are the most clearly. He know very well, he knew the company where everything is, he knows what is each person’s habits, each person’s character is what he can in the new position, with his partners, to do better and more efficient. At that time you will find that the people in the new position, all of a sudden coruscate gives more efficient than the old, or even the ability of others is very difficult to replace, this situation would make the whole process into a positive cycle.

this is one of our conclusion. The higher position, more demand for professional skills are in lower, more is looking at whether the person can inherit and carry forward the company’s corporate culture, why we are talking about small firms is rule of man, big companies want to rely on system management, actually on what is the big company, rely on enterprise culture management.

equity leverage is risky, awarded take care
We say the father’s point of view, said founder and partner of stepwise equity structure stability, we say that the problem of how to deal with the elders touch ability limit why some CEO still 100% stake? The reason is very simple, equity leverage is risky, be careful.

our approach is to hire, three years exposed the serious problem, if the first year of enterprises cannot assimilate, please try to send out. We haven’t had this kind of situation, the more this kind of situation is often not skills problem, is often a personality problem, only character problem will rise to this link, if the character itself is no problem, what are you going to assume you had a choice of yourself.

in addition, must want to mention is restricted to repurchase this method, when the people left a stake, if he does not enter the industry, can use the cash to buy back his stake. I mentioned just now we have two partners leave, there is a person to enter the industry, so we didn’t do; Another did not enter the same industry, we will take the cash to buy back his stake. At that time, we really didn’t have much money, why do this thing? Is very simple, now that said, earnestly to do it, even if this time will inherit the cash loss, but in the mind will leave a employees, this is a company no sooner said than done.

in the end I summarize, first of all, as a CEO, treat company, more is to realize that maybe you really not a captain. Enterprises are the ship, you may be on board a parts, ship themselves can’t walk fast, walk fast to ship, need to have more people come in. Find more cattle, equity award is the best way, because equity award is not only a given his rights management enterprise, is also awarded the management responsibility of the enterprise. Second, as a CEO, must be active to find who is under a captain, department leader, a leader must be within half a year to find second in command, and the second training, whether you are not a qualified boss.

to ask: you talked about just now, some enterprise staff shares will be growth? What is this logic?
Mr. Xing: this is your own experience in the past, are some of the fun of logic. Under the condition of project scheme, some products are very make money, we’ll get employee bonus income 10%. Good product a lot, we all send cash to a $. So, the company founded on that day, we say, the rest of the money according to the company at the time of valuation, hit a discount, to give him into shares, there are several brothers shares are earned out in this way, 0.1, 0.2 all there is.