A huge loss of 17.4 billion in 3 years! Shen Hui, the founder of WM Motor, has an annual salary of 1

WM Motor. The loss in three years is 17.4 billion, but the annual salary of Shen Hui, the founder and chairman of WM Motor, in 2021.

But as high as 1.2 billion. But the real situation is that Shen Hui's annual salary is 10,000 yuan, and the remaining 100 million is an equity incentive.

method of issuance.

WM Motor is a new energy vehicle manufacturer founded in 2015 and a provider of new energy vehicle products and mobility solutions. It is mainly engaged in the design, research and development, sales and after-sales business of new energy vehicles. After several years of research and development, WM Motor launched its first electric model in September 2018.

As of December 31, 2021, WM Motor has sold a total of 83,495 electric vehicles.

And in the fourth quarter of 2021, Weimar received the fourth round of financing, and in this financing, the Li Ka-shing family and the gambling king were obtained.

Financial support for its affiliated companies.

Because of the optimism of these two investment bosses, the market value of WM Motor is very large. As a direct result, the equity portion distributed to the company's executives in the form of equity incentives in 2021 will be valued at fair market value.

When calculated, the value is as high as 100 million yuan. However, there are many preconditions for this right, and it is difficult to get this right. Generally, few executives can meet the qualifications to get equity, so the equity of 100 million yuan may not be able to be obtained by Shen Hui.

Therefore, although it is shown in the disclosure that Shen Hui's salary in 2021 is as high as 1.2 billion yuan, in fact, Shen Hui's salary is about the same as that of the founders of other new energy vehicles, which is 2.01 million yuan, and the annual salary in 2019 and 2020 is only more than 1.4 million and 1.6 million respectively. It's just because the new energy industry is developing at a rapid pace and is favored by the market, so the incentives given to executives can be so valuable, but in fact, these shares can only be really obtained after listing, and they are not free to dispose of after they are obtained. Therefore, everyone still has to read clearly before passing on the message.

Of his so-called $1.2 billion annual salary, only $2.01 million is his own salary and bonuses, and the remaining $100 million is restricted share and share option expenses.

Of Shen Hui's annual salary of 100 million yuan, 2.01 million yuan is salary, and the remaining up to 100 million yuan is restricted share and share option expenses.

The real situation is that the chairman of Weimar doesn't care about the company's life or death, and only cares about cashing out for himself.

Weima built a 1,100-acre factory in Oujiangkou District, Wenzhou, with an investment of 10.5 billion yuan in the first phase, which was basically completed by the end of 17 years. Wenzhou ** also reserved 1,500 acres for the upstream, middle and downstream new energy vehicle industry chain.

Cars are different from mobile phones, if you want to do a good job as an automobile company, it is necessary to produce it yourself, and the scale must be large.

Weimar Shen Hui said that there is no need to explain, because in fact, Shen Hui does not have an annual salary of 1.2 billion.

WM's loss in 2021 will reach 8.2 billion yuan, and Shen Huijin, the founder of WM Motor Company, is as high as more than 1.2 billion, and the salary of one person accounts for nearly 30% of the annual income of the entire company, and the founders of Ideal Auto and Xiaopeng Motors, both of which are new forces in car manufacturing, the total salary of Ideal and He Xiaopeng last year was only about 1.5 million yuan and 1.35 million yuan, that is to say, Shen Hui's annual salary vacancy last year was equivalent to 442 times the total salary of the two founders next door. Looking at Zhu Jiangming, the founder of the upcoming leading car, the total salary last year was 9.55 million yuan, and the year before was 46.49 million yuan, although it is also exaggerated, but it is still far from Shen Hui.

In fact, although Shen Hui's annual salary of 100 million yuan has some truth, it is not entirely accurate, because his remuneration contains two parts, and his salary and dividends should add up to about 2 million, which is still relatively reasonable in the industry. The crux of the problem lies in the fact that the amount of restricted shares or share option expenses for employees is as high as 100 million yuan, and it is precisely because of this part of the income that his annual salary has reached such a high level. This so-called restricted share or share option is a pre-IPO incentive in which shares of the company are granted to executives on pre-determined terms.

This part of the shares may not be able to be dealt with, only the hard work of the incentive object, the company can become the actual income of the shareholder after the listing.

That is, this so-called high annual salary can only be really made after the successful listing of Weigao Ranma Automobile in the end. If it fails to go public in the end, then he will not be able to get these shares, which is actually very common for an industry with long-term returns such as car manufacturing. Although WM Motor has not yet been listed, these small goals cannot be achieved for the time being, but the high salary incentive given to the management is also to motivate the senior management to drive the growth of the company, so as to achieve high growth or high valuation, and at the same time attract investment institutions to settle in.

As for whether it can be obtained under the incentive of high salary, at least Weimar is not in a very good situation.

The company's executive responded to these questions, and it was not worth spending time to explain, and it was possible that this matter may not be what many people imagined, and it should be something else.

Weimar Shen Hui responded that he didn't know that the income was so high, and his wife would be in trouble if she checked it, which was really outrageous from the data.

Weimar Shen Hui's response to this is that this is not true, and it is not like this.

In the prospectus disclosed by WM Motor, it seems that it is also preparing for listing. In the prospectus, the company's losses continued to increase from 2019 to 2021, including a huge loss of RMB 8.2 billion in 2021. However, founder, chairman and CEO Shen Hui received a total of 100 million yuan in compensation in 2021, accounting for nearly 30% of WM's revenue that year.

As an emerging power company in the field of automobile manufacturing, WM is still in its infancy and growth stage, and the market pressure is very high. According to statistics, from January to August 2022, WM Motor delivered a total of 29,140 vehicles. It lags far behind NIO, IDEO, Xpeng, and even second-tier new power automakers such as Leap and Nebi.

Therefore, Weimar is still hovering on the line of life and death, and it is still far from the degree of success. Therefore, in this case, it is very unreasonable to pay the founder of Leapmotor a high salary.

At present, the most important thing for WM Motor is to spend all the funds on the research and development or marketing of new models, so that users can learn more about WM Motor. As a founder, you should work with your team to get through the difficulties and then share the fruits of success. But according to the prospectus of Huima Motor.

In 2021, Huima Motors paid a total salary of 100 million yuan to key management, and Shen Nanpeng's total salary that year accounted for 72% of the total compensation of key management. In other words, Shen Hui took most of the compensation alone, and the team's compensation was not high. In addition, the founder's high salary sends a bad signal to the outside world that the company is trying to make a good Nahuiju car, or whether it is making money.

If, in order to build a good car, when the company loses so much money, why not pay high salaries, why not use limited funds for more needs, then to a large extent, this new power car manufacturer is not to build a good car for users, but to make money for the market.

The founder gets a high salary, which shows that the business model of this company is relatively good, Qi Ming, this company generally adopts the joint-stock founder, and needs to get the proof of high dividends and annual salary, so that the overall operation of the company is relatively good.

Some of the signals that this incident passed on to Lu Song are that the founders of the company take the money according to the annual salary, but the amount of the annual salary is too high, but the follow-up company has lost so much, and the blow to the company is very serious, which is not conducive to the stability of the company. Shut up the spring.

The founder gets a high salary, which will send a bad signal to the outside world, that is, whether your company is to build a good car, or to go public to make money.

His specific response is that this is a misunderstanding of individual **, because this figure is the salary calculation method in Hong Kong, and it is not a concept at all with the annual salary in the mainland, and income has nothing to do with cash, because the so-called annual salary of 1.2 billion is only an equity incentive option, so it must be limited to a series of goals in the early stage.

At this point, the 1.2 billion is mainly based on the company's valuation at the time, and if the business is not successful, then it will all be attributed to 01 cent. If the business is successful, then the valuation may be more than the estimated 1.2 billion at the time.

"Sky-high annual salary"! How did Weimar Shen Hui respond?

His response to this matter is also very clear, he said that this is a misunderstanding of him here. It is also said that the 1.2 billion is the calculation method of salary and rent in Hong Kong, which is completely different from the mainland and is the same concept. It's not that this number has nothing to do with cash at all.

The 1.2 billion was the company at that time, and if the business was not successful, then it was just a number, and it was all attributed to 01 cent. If it succeeds, then there may be more than these 1.2 billion.

How did Weimar Shen Hui respond to the sky-high annual salary?

His response was very straightforward, saying that the 1.2 billion was the company's valuation estimate at the time. If you don't succeed in starting a business, then all of them will be zero, and you won't get a penny. If the business is successful, then the valuation may be more than this 1.2 billion.

And he also responded, this is a misunderstanding of some individual ** on this matter, 1.2 billion is also a salary calculation method in Hong Kong, and it is not the same concept as the annual salary in the mainland. It's not personal income, it has nothing to do with cash at all, it's a valuation of the company.

Tips

The environment is very straightforward, this is a misunderstanding of individual **, 1.2 billion is a new way of Hong Kong's economy, which is completely different from the mainland. He said that it was not an annual salary, it had nothing to do with cash, it was the valuation of the company at that time. If the company succeeds, then the valuation may be more than the 1.2 billion entrepreneurship, and if it is not successful, it may not have a penny.

If the business is very successful, it is the entire management team that gets 1.2 billion, not just him.

said that "this is a misreading of individual self-**, 1.2 billion is Hong Kong's 'salary' calculation method, and the mainland's annual salary is a different concept rough shot, entrepreneurship is not simple and successful, and there is no penny to block the bench."

Shen Hui, the founder of WM Motor, responded positively to WM Motor's "1.2 billion annual salary of the founder of Sail Pure" for the first time, claiming that this was a misreading of individual self-esteem. He said: "1.2 billion is the salary calculation method in Hong Kong, which is a different concept from the annual salary in the mainland, which is not income, and has nothing to do with cash.

$1.2 billion is estimated based on the company's valuation at the time. ”

The annual salary of 1.2 billion is not income, it is an equity incentive option, which can only be received when the predetermined goal is achieved.

What does IPO mean? Why do listed companies want to IPO?

I'm sure everyone has heard of IPO, so what does IPO mean? To put it simply, IPO refers to the initial public offering of a company, the full English name is initial public offering, that is, the meaning of initial public offering, and the first letter of the three English letters is taken to form the abbreviated "IPO".

Many people understand an IPO as a listing of a company, but in fact an IPO and a listing are not strictly the same thing.

IPO refers to the transformation of a company from the original private equity to public equity, that is to say, the original shareholders of the company are a fixed number of people, and the company is funded by them, and after the IPO, the company is publicly issued, and all the people who buy ** are shareholders of the company. In fact, at present, the IPO we often talk about has represented the company's listing and issuance.

Why do listed companies want to go through an IPO? The reason is actually very simple, that is, to make money, is to get more financing from the market for development, and the money raised does not need to be returned, can be used indefinitely, which is undoubtedly very good for enterprises, so many companies will want to go public once they become bigger, so that they can get more funds to make the company develop faster. In addition, there is another purpose for the company to carry out an IPO, that is, the company's shareholders sell their shares to obtain cash.

The IPO process is more complicated, although the company can also operate the IPO itself, but no company will do this, they will choose the investment bank as the underwriter, because the investment bank has rich experience and stronger operational capabilities.

It can be seen that the IPO is the company's initial public offering, and the issuance of these ** can be traded arbitrarily in the secondary market, so the IPO cannot be equated with the listing, and the IPO is just the process that the company must go through to go public.