Lenovo CEO Gives Away Bonus to Employees, Why American CEOs Should Follow Suit
The CEO of Lenovo, Yang Yuanging, has taken a step towards making corporations’ compensations schemes more equitable between CEOs and the rest of the employees. Yuanging, who recently received a bonus of $3 million, decided to give away the bonus by distributing it among 10,000 junior level employees – each of whom got roughly $314.
Yuanging, who led over Lenovo’s best fiscal year ever, helped the company increase its net profit by 73%, "a record-setting year” for the Chinese multinational information technology and electronics company – which recently launched a host of new products and services including no-contract broadband plans for its mobile computers.
Though $314 doesn’t seem like a lot of money, now Lenovo’s junior employees will count with some extra money to buy a new cellular phone or take a date out for dinner. However, Yuanging’s gesture will go a long way for the company. Besides being an acknowledgement of these employees' hard work and dedication, the $314 bonus will be an extra motivator for an already motivated and highly performing team -- which will likely improve its performance in the upcoming fiscal year.
And that is why it would be smart for American CEOs to try this new formula.