Lenovo boss gives workers millions

CEO Yang Yuanqing plans to donate at least $3 million of his bonus to employees. That's quite a payday for those living in China.

By Kim Peterson Sep 3, 2013 4:15PM
Lenovo CEO and Chairman Yang Yuanqing (© ChinaFotoPress/Getty Images)Imagine your boss handing you one month's pay out of his own pocket.

That's happening for the second straight year at Lenovo Group, where CEO Yang Yuanqing (pictured) plans to give away $3.25 million of his bonus to 10,000 of his company's workers, Bloomberg News reports.

That works out to about $325 for each employee. That may not sound like much in Morrisville, N.C., one of two cities where Lenovo has headquarters. But in the other city -- Beijing -- $325 is almost the equivalent of one month's pay.

Workers in 20 countries will get the payments, but about 85% of them are in China, Bloomberg reports.

Why would the 48-year-old Yang give away his personal bonus? According to a memo that went out to workers, Yang wants to make sure all employees understand the impact they have on building Lenovo, the world's largest PC maker.

Fewer than a third of Lenovo's employees will get the bonus. Yang decided to give the payouts to those in the trenches in manufacturing, the ones who are paid by the hour and aren't eligible for other bonuses or commissions.

Yang will still get a hefty salary after giving away his millions. He was paid $14.6 million last year and owns about 7% of the company's stock.

There aren't many CEOs willing to share their bonuses. Bloomberg only found a couple examples of other executives who have done so, including the boss of Russian aluminum producer United Co. Rusal and the head of U.K. clothing retailer Next Plc.

More on moneyNOW
215Comments
Sep 3, 2013 4:39PM
avatar
He obviously can afford it and I think he shows great wisdom in saying he wants the workers to understand the impact they have on the company.  If you think about how much of a difference getting an additional month of pay would mean to most of us it is not only wise but incredibly generous.  I know there will be people who say he should give more or shouldn't be paid so much but I think if this is an example of how he thinks and the fact that he values even the lowest paid employees he is worth every penny of his salary.
Sep 3, 2013 4:33PM
avatar
something Wallstreeters could learn.....
Sep 3, 2013 5:00PM
avatar

It doesn't matter that its only 325.00.  If more bosses did that this country would have a lot more dedicated and happy employees...

Sep 3, 2013 4:43PM
avatar
I think that is very kind of him. I hope all the workers appreciate it.
Sep 3, 2013 5:13PM
avatar
I've worked for a number of doctors over the years. ONE out of all of them used to give me $200 plus a gift every Christmas. I don't work for him anymore, but he has my life-long loyalty mainly because of two hundred bucks a year (and oh yeah, treating me like a human being the rest of the time).
Sep 3, 2013 5:08PM
avatar

Our CEO's in this country should follow this guys lead

Sep 3, 2013 4:42PM
avatar
The reason most do not do this is they have ego's as big as their salary.  They don't understand that the workers make the company, and they credit themselves for all the decisions they made.  They fail to understand that even if a CEO makes a decision or sets a goal, it's the workers that achieve the goal or get the company going in the right direction.  Why should the CEO earn $30 Million for making decisions which, without the good workers, would amount to nothing.  If anything executive pay packages and more like gambling, where the gambler always wins something.  They make some decisions (probably using a dart board) .. if the workers succeed in doing what was decided, they get huge piles of money (your a success have piles of cash).  If the workers fail, they get a golden parachute to exit the company (you failed to succeed, take these millions and go away).   
Sep 3, 2013 5:10PM
avatar
Give away his pay of $3.25 million?  That's nice and generous.  Will you ever see this from corporate America?
Sep 3, 2013 5:11PM
avatar
Its nice to see that there is an employer that recognizes that his employees are his #1 asset. If only the greedy b___s out here could understand that simple concept. 
Sep 3, 2013 4:55PM
avatar

Good for him.  Be nice to get a $0.01 raise after six years from my multibillion dollar corporation CEO.

Sep 3, 2013 5:15PM
avatar
Smart man, he knows which side of his bread the butter is on so to speak. Gee a CEO with a conscience.  Some American CEO's should take note and learn how to develop good loyal workers.
Sep 3, 2013 5:11PM
avatar
Nice touch giving it to the hourly non bonus employees. We can debate all day whether exec pay & bonuses are actually earned but at least this guy has his priorities straight. Doing this is great for his company. Now imagine if all top execs said "no that is too much. Let's pour that money back into the company as incentive to our employees that actually perform at a high level.". Productivity and profit would soar for most. Workers would be loyal and a bonus would actually mean something rather than just be a tax dodge for those inside the circle. Ah but there I go again dreaming of true capitalism instead of this greed based Ferengi culture that has taken over most business.
Sep 3, 2013 5:14PM
avatar

It's the rare CEO who recognizes in such a public way that he didn't get where he is, or earn what he earns, all by himself.  That Yuanqing recognized the employees on the bottom-most rungs for their contribution and hard work is not a lesson to be ignored.  Close translation of "Good Job" in Cantonese:

 

Zuòde hÇŽo! 

Sep 3, 2013 5:23PM
avatar
Let's see the Koch Bros, and Karl Rove do that for their employees; they'd rather give it to Rpublican party.

Sep 3, 2013 5:24PM
avatar
This is a great story.  Granted we hear about the greed here in the U.S. But there are great leaders that are leading companies in the U.S.  that do understand a happy workforce gives you higher productivity, lower turn over and most important a person who is loyal to the company.   These companies  are out there, you just have to search.
Sep 3, 2013 5:24PM
avatar
I was hoping this was about my company but alas, it was not.
Sep 3, 2013 4:57PM
avatar

If this were to catch on, then China would officially have more compassion for our workers and a higher moral ground than the U.S.

 

Meanwhile, in the 'states, many of our own citizens seem actually upset and begrudging towards the fact that we have striking workers in the fast-food industry who are asking for more pay.... these people who aren't much better off than working in a sweat-shop...

 

Labor day would've been a good place to start, but instead we got nothing.

Sep 3, 2013 5:56PM
avatar

MY BOSS WAS THE BEST EMPLOYER. MAY SHE REST IN PEACE. SHE GIVES AS A BONUS $50.00 FOR EVERY YEAR THAT YOU WORK PLUS 1 DAY PAY FOR YOUR BIRTHDAY. I WISH THAT HER CHILDREN WILL CONTINUE HER GENEROSITY.

avatar

Charity is so Anti Government lol

 

They want it all.......

 

Those who give back to the people are looked at as trouble....

Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

Trending NOW

What’s this?

MARKET UPDATE

[BRIEFING.COM] The stock market ended the holiday-shortened week on a mixed note as the Dow Jones Industrial Average shed 0.1%, while the S&P 500 added 0.1% with seven sectors posting gains.

Equity indices faced an uphill climb from the opening bell after disappointing quarterly results from Google (GOOG 536.10, -20.44) and IBM (IBM 190.04, -6.36) weighed on the early sentiment. Google reported earnings $0.15 below the Capital IQ consensus estimate on revenue of $15.42 ... More

MSN MONEY'S