883 million, Oriental Selection Domineering Dividends!

This may be the most generous equity "red envelope" so far this year, right?

On April 11, the equity incentives selected by Oriental were officially issued, and 154 recipients received a reward of 30.459 million shares.

Based on the closing price of HK$29 per share on the day, the reward is worth up to HK$883 million (RMB 775 million).

Among them, New Oriental founder Yu Minhong and Oriental Selection executives Sun Dongxu and Yin Qiang received 1.5 million shares, 3 million shares and 600,000 shares respectively, with valued at HK$43.5 million, HK$87 million and HK$17.4 million respectively.

The remaining 151 employees will receive a reward of 25.359 million shares , and on average, each employee participant will receive HK$4.87 million (RMB4.27 million) in shares.

Such a "rich" and cool share reward makes people curious: As the storefront of Oriental Selection, how much can Dong Yuhui get?

01. "It's similar to Yin Qiang"

Two months ago, Oriental Selection announced its incentive plan for 2023.

At that time, the most concerned issues in the outside world were nothing more than

"How to give it?"

"Who has it?"

"How much can Dong Yuhui get? "

Although the current reward is not "incentived by equity option" according to the plan at that time, instead, it is directly given a share reward, which means that every participant will directly obtain this "big red envelope" selected by Oriental.

Simple, rough and effective.

Regarding how much money Dong Yuhui can get, some media have asked Dongfang for this question, but the other party said that because it involves personal privacy, the announcement will not disclose the specific personnel to the public.

However, some industry insiders said:

"Dong Yuhui must be in the ranks of equity incentives. After he became famous at that time, many institutions went to poach him, and even if he offered an annual salary of tens of millions, he would definitely get equity incentives this time."

"Dong Yuhui not only received equity incentives this time, but it is likely that the number of equity gains will be the same as that of senior executives. The equity assigned by Dong Yuhui is not as good as that of the old man (Yu Minhong) and Teacher Sun (Sun Xudong), and should also be similar to Yin Qiang shares, and it is expected to be more than 10 million yuan."

When Oriental Selection first became popular last year, Yu Minhong joked in the live broadcast room that he gave Dong Yuhui a share and added, "It's a lot of money, and today one share has risen to 6 yuan!"

Of course, as a hero who brought Oriental selection out of the circle, Dong Yuhui will definitely receive no less rewards.

Dong Yuhui himself responded in the live broadcast room:

"The old man (Yu Minhong) who everyone is worried about promised to send me a share, and it has sent it, and there are more than one share, and there are quite a lot. But it cannot be said specifically that this company has requested confidentiality, so it will definitely not be that bad, not as bad as everyone thinks."

"I think the salary I give me is very high now. I am a senior executive-level treatment in the group. I feel very satisfied."

Judging from the fact that CEO Sun Dongxu has received more shares than founder Yu Minhong, the reward Dong Yuhui may be "almost the same as Yin Qiang" as the media said.

After all, in Yu Minhong's words, if they do not recognize their interests after making such a huge contribution to New Oriental, it is wrong for New Oriental.

02. One reward, one kill three birds with one stone

The share reward was implemented in a way that exceeded market expectations. The profound meaning of Oriental's selection of this move may be - "showing muscles", retaining people and spurring them.

"Showing muscles":

The source of huge share rewards is inseparable from live streaming and selling goods.

According to data, from June 1 to November 30, 2022, the GMV of Oriental Selection reached 4.8 billion, of which the profit generated was nearly 600 million yuan, and the profit margin reached 28%.

Before leaving the circle, New Oriental Online's stock price was only HK$2.84. By January 2023, its stock price rose to a maximum of HK$75.55.

The stock price soared 27 times in 9 months, and the profit in 5 months was nearly 600 million yuan. Some data even said that the average monthly GMV of Oriental Selection exceeded 30 million yuan.

This proud achievement eventually produced a share reward of HK$883 million for the core backbone of Oriental Selection, as if it was declaring its professionalism and stability to potential brands and merchants in the market. I believe that more customers will come to cooperate in the future.

Retaining people and spurring:

In the announcement of this share reward, Oriental Selection clarified the rules of ownership and restriction.

The share reward is divided into three years, and it is 20%-50% of the total share rewards awarded each year. The conferencing person is required to meet the specific threshold for performance assessment within one year before the date of vesting.

When the grantor commits serious misconduct or breach of contract, the share award that has been awarded but has not yet been exercised will be immediately invalid and the shares delivered to the grantor shall be transferred to the company.

This means that if the bearer wants to cash out all the shares, he has to stay in Oriental Selection and continue to struggle for at least three years.

This move will better bind the anchor team to the Oriental Selection live broadcast room, bringing a positive effect on the company's business development.

At the same time, the total number of employees of Oriental Selection is currently 1,670, of which nearly 10% of the number of people who receive share awards.

Through this incentive, it can just spur internal employees and tell them that they can eat "big cakes" as long as you work hard enough.

03. The "pain period" brought about by the "salary cut wave"

From immature to mature, live e-commerce has been developing for many years.

The salary level of top anchors has also shrunk from 10 or 20 million a year to 1 or 2 million a year.

The live e-commerce industry is experiencing a "salary cut" wave.

Although this is a necessary path in the growth process of an emerging industry, individual employees will definitely experience a large psychological gap.

So this may be one of the reasons why Oriental Selection announced its incentive policies at this time.

Coincidentally, Yaowang Technology, the "first stock of live e-commerce", also released the draft of the "2023 Stock Option Incentive Plan".

The incentive plan is similar to Oriental Selection, with a shareholding of 40 million shares and an exercise price of 14.33 yuan per share. The incentive plan grants a total of 269 incentive targets, and the performance evaluation of the exercise period is both for three years.

The two leading companies made the same choice at the same time.

It is obvious that they are all trying their best to survive the "pain period" caused by the "salary cut" of the "salary cut" for companies or employees.

This undoubtedly sounded a wake-up call for the entire industry.

After all, people-oriented companies know how laborious and time-consuming it is to cultivate a backbone. If you give up the possibility of long-term achievements for some immediate benefits, wouldn’t this be “a convex boat”?