Lenovo Group Ltd. (992), the world's biggest maker of personal computers, said Chief Executive Officer Yang Yuanqing will share his bonus with employees for a second straight year after achieving record shipments and sales.
A pool of 10,000 workers will get payments this month to recognize their contributions, Gina Qiao, senior vice president of Human Resources, said in a memo to some workers. The memo was confirmed by spokesman Jeffrey Shafer, who said the total payment is about $3.25 million.
Lenovo posted revenue of $34 billion and PC shipments of 52.4 million units in the 12 months ended March 31 as the company gained market share and expanded sales of mobile devices such as smartphones and tablets. The 48-year-old Yang, who gave $3 million from his bonus a year earlier, led the company to the top spot in the June quarter as it overtook Hewlett-Packard Co. (HPQ)
"This payment is personally funded by Yuanqing," Qiao said in the memo. "He believes that he has the responsibility as an owner of the company, and the opportunity as our leader, to ensure all of our employees understand the impact they have on building Lenovo."
Lenovo, which has headquarters in Beijing and Morrisville, North Carolina, rose 0.9 percent to HK$7.57 at 1:04 p.m. in Hong Kong. The stock has climbed 7.8 percent this year while the city's Hang Seng Index has dropped 2.3 percent.
Month's Pay
Yang's award will be made to Lenovo staff in 20 countries, while about 85 percent of recipients are in China, Shafer said. Yang spends time in both the Beijing and Morrisville offices, the spokesman said last year.
The average payment of about $325 is almost equal to a month's pay for a typical city worker in China. The average annual wage of urban workers at private companies last year was 28,752 yuan, the National Bureau of Statistics said in May. That's equal to about $392 a month.
Yang was paid $14.6 million last year, including a bonus of $4.23 million and long-term incentive awards of $8.94 million, according to the company's annual report. Yang holds about 744 million shares of Lenovo, or 7.1 percent of the company's outstanding stock, as of the end of March, the report said.
Other executives to share their bonus include Oleg Deripaska of the world's largest aluminum producer United Co. Rusal (486), who gave his $3 million bonus for 2012 to 120 employees, UPI reported in July. Simon Wolfson of Next Plc (NXT), the U.K. clothing retailer, awarded his bonus of about $3.7 million to 19,400 staff, the Telegraph reported in April.
To contact Bloomberg News staff for this story: Edmond Lococo in Beijing at elococo@bloomberg.net
To contact the editor responsible for this story: Michael Tighe at mtighe4@bloomberg.net
Lenovo CEO Yang Yuanqing
ChinaFotoPress/Getty Images
Yang Yuanqing, chief executive officer of Lenovo Group Ltd., poses for a photograph during a pledging conference in Beijing on April 20, 2010.
Yang Yuanqing, chief executive officer of Lenovo Group Ltd., poses for a photograph during a pledging conference in Beijing on April 20, 2010. Source: ChinaFotoPress/Getty Images
Lenovo CEO Yang Yuanqing
Nelson Ching/Bloomberg
Yang Yuanqing, chief executive officer of Lenovo Group Ltd., was paid $14.6 million last year, including a bonus of $4.23 million and long-term incentive awards of $8.94 million, according to the company's annual report.
Yang Yuanqing, chief executive officer of Lenovo Group Ltd., was paid $14.6 million last year, including a bonus of $4.23 million and long-term incentive awards of $8.94 million, according to the company's annual report. Photographer: Nelson Ching/Bloomberg
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