Analysis of Glodon s year end zero out equity incentive and performance disputes

Mondo Finance Updated on 2024-01-31

Recently, a news about the listed company Glodon has sparked heated discussions in social media and news. The news mentioned that the year-end performance of all employees of Glodon was forcibly cleared. This not only means that the year-end bonus of employees will disappear, and the salary income will drop by about 20%, but also triggers in-depth thinking on a series of issues such as Glodon's internal governance and employee incentive mechanism.

According to Glodon employees, the notice they received did not contain a written explanation, but only a verbal communication. This made the employees of Glodon full of confusion and anxiety. According to reports, Glodon's main reason for this decision was speculated to be "the lifting of the ban on executive ** incentives". This rumor has raised deep doubts about Glodon's management and company culture, and has also made many employees full of doubts about the company's future.

It is understood that in the announcement issued by Glodon on September 8, 2022, it was priced at 2504 yuan ** to the company and its subsidiaries 417 management team and core backbone, granted a restricted ** about 775950,000 shares. The assessment year for the lifting of the ban on the incentive plan is set for 2022-2024, which sets the requirement that the annual net profit is not lower than the target. If these net profit targets are not met, the share of the awards granted to the executives and employees will be repurchased and written off by the company.

According to Glodon's third quarter report for 2023, the company's net profit in the first three quarters was 26.2 billion yuan, down 59 percent year-on-year02%。Such a performance is far from meeting the net profit target set by the company, which is 12 percent away from the zero target set in 2023500 million is still close to 1 billion. This makes Glodon's executives and employees most likely unable to lift the ban**, and may even face the company's repurchase and cancellation of its **.

In addition, in the Glodon year-end performance clearance incident, some employees received layoff notices. According to reports, "it is said that 20% of the workforce will be cut, about 2,000 people?."Anyway, what is certain now is that many people have been laid off. "This news is widely spread among employees, which is bound to have a greater impact on the company's culture and team cohesion.

In an open letter to all employees, Glodon claimed that the company would motivate employees accordingly based on its estimate of financial results in 2023. On the one hand, however, the letter failed to explain why the company was laying off employees and how it was motivating its employeesOn the other hand, employees are also dissatisfied with this communication method of the company's management. The issue of "performance zero" remains unresolved, and disputes between the company's employees and management are intensifying.

The heated controversy triggered by Glodon's year-end performance clearance incident reflects the delicate relationship between equity incentives and employee benefits. Reducing employees' year-end bonuses is not a long-term solution. If it is really to increase net profits, regardless of the work pressure and psychological burden of employees, in the long run, I am afraid that it will be difficult for enterprises to retain core talents, which will affect the development of enterprises. After all, employee satisfaction and morale are both important factors that affect the morale of a business. Only by finding a balance can we truly achieve the long-term stable development of the company. What is the reason, everyone will wait and see, and see whether the ** of the final equity incentive is repurchased, and we can return the truth to everyone.

Related Pages