CEO Gives His $3 Million Bonus to Employees
- 12 years ago
CEO Gives His $3 Million Bonus to Employees - as part of the news series by GeoBeats.
We are inundated with media stories about how how executive compensation continues to rise while the economy struggles.
According to USA Today, the median CEO compensation rose by 27% in 2010 while the workers' compensation increased by only 2% during that period.
One CEO, however, took an admirable step of distributing his bonus to lower-paid employees.
Lenovo is the world's 2nd largest computer-maker and generated nearly $30 billion in annual revenues.
Lenovo's CEO, Yang Yuanqing, decided to give away $3 million of his bonus which was distributed among stuff working on the manufacturing side. CBS estimates, based on wages for similar employees in China, this equates to nearly 1 month of a worker's salary.
Even though, he would still get to keep substantial income considering his last year's earnings were over $14 million, the gesture is substantial and uncommon.
And perhaps such a management approach is one of the reasons why Lenovo has shown impressive growth relative to its competitors.
In its last quarter, it grew faster than any of the other large-scale PC vendors and by many estimates, could soon overtake HP as the largest computer.
We are inundated with media stories about how how executive compensation continues to rise while the economy struggles.
According to USA Today, the median CEO compensation rose by 27% in 2010 while the workers' compensation increased by only 2% during that period.
One CEO, however, took an admirable step of distributing his bonus to lower-paid employees.
Lenovo is the world's 2nd largest computer-maker and generated nearly $30 billion in annual revenues.
Lenovo's CEO, Yang Yuanqing, decided to give away $3 million of his bonus which was distributed among stuff working on the manufacturing side. CBS estimates, based on wages for similar employees in China, this equates to nearly 1 month of a worker's salary.
Even though, he would still get to keep substantial income considering his last year's earnings were over $14 million, the gesture is substantial and uncommon.
And perhaps such a management approach is one of the reasons why Lenovo has shown impressive growth relative to its competitors.
In its last quarter, it grew faster than any of the other large-scale PC vendors and by many estimates, could soon overtake HP as the largest computer.