Mr. Tai said that salary is not the goal of senior leaders. If MWG is successful, they will receive a proportionate share, including ESOP.
In a recent investor meeting, Mr. Nguyen Duc Tai - Chairman of the Board of Directors of Mobile World Investment Corporation (MWG), said that currently Mr. Pham Van Trong - CEO of Bach Hoa Xanh, could receive his salary but "refused to accept it".
"For senior leaders, salary is not their goal, but fighting for the company's success. MWG ensures that when the company is successful, there will be a policy to share with those who created it," Mr. Tai shared.
Mr. Pham Van Trong took office as CEO of this food and essential consumer goods retail chain from April 2023. At that time, he said he would not receive a salary until the chain was profitable in 2023. Mr. Nguyen Duc Tai once commented: "Being appointed is not a right, it is a huge responsibility. There is no place like Bach Hoa Xanh where the appointed person is receiving a monthly salary, but now has no salary and still has to work hard."
By the end of 2023, Bach Hoa Xanh will reach the break-even point after expenses corresponding to actual operations, based on core business activities. This break-even result does not include one-time expenses that were fully accounted for in the fourth quarter and a part of depreciation costs related to store area expansion due to restructuring. MWG's management said that this cost will gradually decrease over time and Bach Hoa Xanh is confident that it will offset this part to have a net profit for the whole year of 2024.
Pham Van Trong - CEO of Bach Hoa Xanh. Photo: MWG
Commenting further on the issue of income, Mr. Nguyen Duc Tai said the company's philosophy has always been "remembering the person who planted the tree when eating the fruit". For many years, MWG's senior leaders "have never asked for a salary increase" because they believe that if they produce results, they will receive a worthy share.
Not only the boss of Bach Hoa Xanh, Mr. Nguyen Duc Tai, General Director Tran Huy Thanh Tung and Mr. Doan Van Hieu Em - CEO of two retail chains The Gioi Di Dong and Dien May Xanh, did not receive salaries in the third quarter of 2023. In the last quarter of last year, all three received the same salary of less than 4 million VND for three months.
One of the rewards that leaders will receive is the right to buy ESOP shares . This year, if MWG achieves the target of having 125,000 billion VND in revenue and 2,400 billion VND in profit after tax or higher, leaders and management team will be able to buy shares at preferential prices.
"Everyone goes to work for two things: money and joy. If we can combine the two, we will create great motivation for our team," Mr. Tai stated his opinion.
ESOP is a policy that Mobile World has maintained quite regularly over the years. This is considered an important strategy to retain talent. The company has repeatedly ignored shareholders' opinions that the issuance rate is too high, affecting their interests. Last year, due to unsatisfactory business results, MWG did not propose an ESOP solution.
Earlier in 2022, the company issued more than 19 million bonus shares to 567 employees at VND10,000, 13 times lower than the market price. These shares are restricted from transfer for 4 years. After each year, 25% of the ESOP shares will be freely transferable.
Owning MWG shares helps the company's leaders hold large assets. It is estimated that according to the current market value, Mr. Tai is holding more than 1,600 billion VND. Other leaders also have assets in shares ranging from tens to hundreds of billions of VND.
Recently, Mr. Robert Willett - an independent member of the Board of Directors, registered to sell 1.2 million shares. With the closing price on March 1 being 46,600 VND per unit, Mr. Robert earned about 56 billion VND. He said that the money would be used to buy a house for his wife because her health is not good.
Siddhartha
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