Chapter 701 - Employee Stock Ownership Plan (1) – Part 2
Chapter 701: Employee Stock Ownership Plan (1) – Part 2
The internal auditor said, “We will include the wages of our researchers, the cost of lab equipment and machines, and the maintenance cost of them and also the chemicals that are used in the research center in R&D expenses.”
“Please do so. Also, we will award those employees who have contributed to our company to receive the environment management system certificate of ISO 14001, recognition of our in-house research center, and the certificate of a startup company with technology. We will encourage and promote this type of hard work.”
“Yes, sir.”
Gun-Ho continued his speech at the executive meeting, “Dyeon Korea has the exclusive right to do business in the entire Asia, which was granted by Lymondell Dyeon previously. For now, as part of our effort to expand our business to other countries in Asia, I want to have a factory in China and India. Accordingly, I made a suggestion to Lymondell Dyeon that we establish a manufacturing company in China and India, and I received their consent on it. Mr. Vice President Adam Castler, could you please raise the letter that we received from Lymondell Dyeon about it?”
Mr. Adam Castler held the letter above his head, so everyone could see the official letter from Lymondell Dyeon.
“I’d like to hear your opinion about our investment plan in China and India.”
Director Kim raised his hand and said, “I do agree with the plan of having a factory in China and India. I just want to suggest the areas that we want to pick for the factories. For China, Suzhou City in Jiangsu Province would be our perfect choice. Many Korean companies are already there doing their business. As for India, Chennai should be good since Hyundai Automobile is there.”
“I do agree with Mr. Director Kim. Is there anyone else who wants to share their opinions? If there is no objection or addition, we will carry out the plan right away.”
Gun-Ho then took some time to sip his water before continuing.
“Our company’s capital has recently increased to 19 billion won. The value of our company share is 10,000 won per share, and we now have 1.9 million shares. I want to share the company profits and ownership with our employees. Also, I want to extend this to GH Mobile’s hard workers as well. GH Mobile is our parent company after all.
Gun-Ho took a brief break to let the interpreter interpret for Mr. Adam Castler. After making sure that Mr. Chae finished his interpretation, Gun-Ho continued, “I want to distribute 10% of our 1.9 million shares, which would be 190,000 shares, to Dyeon Korea’s 150 employees and GH Mobile’s 500 employees equally. Once our company goes public as it will be registered with KOSDAQ, the value of the share will go up without a doubt. Each employee will be having an opportunity to get 292 shares if we distribute them equally among the Dyeon Korea and GH Mobile’s employees, and I want to distribute 292 shares to them for the price that is listed on our business registration.”
Director Yoo had a question.
“The current value of our company share is 10,000 won per share. If an employee is assigned 292 shares, does he have to pay 2.92 million won for them?”
“That’s correct. We will be the owners of this company together, and we will grow together as well.”
Director Kim chipped in, “We have to think about the cases where some employees couldn’t come up with 2.92 million won, or some of them simply don’t want to have the company shares. If these forfeited shares occur, we will have to find someone else to take those shares.”
“We will let other employees take those shares. Also, we might want to provide them with a payment plan for the 2.92 million won, so more employees could afford to keep the shares. Mr. Internal Auditor, can you further implement the plan with installment payments?”
“Yes, sir. I will develop the idea with detailed instruction about how to make installment payments. Also, I think we’d better place an additional worker in the accounting department—someone who will handle only this stock dispersion program. Otherwise, the accounting team will be overloaded. They will have to make a list of the small shareholders and handle the payments as well.”
“Mr. Internal Auditor, please take care of it as well.”
The meeting room soon became filled with noises of talking. The executive officers were talking about the stock dispersion program with the people sitting next to them. Gun-Ho began to speak again, and everyone in the room paid attention to him.
“Mr. Director Yoon, please make an official notice about this program for GH Mobile, and tell them that Dyeon Korea is extending the offer of stock dispersion to GH Mobile. And also, ask them to send us a list of the employees’ names who are willing to purchase Dyeon Korea’s shares, along with the total number of shares that GH Mobile needs. Also, tell them that as Dyeon Korea is offering our employees a payment plan to receive the shares, it would be nice that GH Mobile also could come up with a similar plan.”
“Yes, sir.”
“And, Mr. Director Kim, many of our employees are probably not familiar with the employee stock ownership program. Please have an information session and invite all of our employees, and explain to them what it is and why we are doing this.”
“Understood, sir. I will discuss it with Mr. Internal Auditor and will hold an information session.”
It seemed that Mr. Adam Castler’s cell phone started vibrating since it was on mute for the meeting; he quickly went out of the meeting room to take the call. After a moment, he came back and said, “It was from Mr. Vice President Brandon Burke at the International Business Development Department of Lymondell Dyeon. Being aware of our plan to expand our manufacturing business to China and India, he is suggesting Chennai for our factory in India.”
Director Kim responded, “Oh, I already mentioned the Chennai area for our manufacturing company in India, earlier in this meeting.”
Gun-Ho said, “As to India, I will talk to Manager Jong-Geun Lee who is currently working in our office in India, once this meeting is over. I will ask him to find a factory in the Chennai area.”
At the very moment, Gun-Ho thought, ‘I guess Mr. Brandon Burke is expecting to retire soon. Once Dyeon Korea opens a manufacturing company in India, he would probably want to work there after his retirement, holding a temporary position. I wonder if he would miss the port of Seattle while sitting in the Madras Port (old name for Chennai).’
It was about the time to wrap up the meeting.
“Well, if I don’t hear anything else, we will end the meeting for today.”
After the meeting, Gun-Ho came back to his office.
The first thing that he did when he came back to the office was to call Manager Jong-Geun Lee in India.
“Mr. Manager Lee? It’s Gun-Ho Goo.”
“Oh, how have you been, sir?”
“I’ve received the report that you sent to us earlier, stating that the sales are steadily increasing. That is certainly good news, and you are doing a great job there.”
“I was hoping that the sales would increase more rapidly. It’s way too slow. I’m sorry about that, sir.”
“We just had an executive meeting here today, and I want you to look for a factory in the Chennai area, that is on the market for sale. If possible, I want the factory land to be more or less 5,000 pyung large.”
“Huh? A factory, sir? If we buy a factory in Chennai, what would happen to the office here?”
“We will keep the office in New Delhi where you are working at right now.”
“Oh, okay, sir. I’ve seen some factories on sale in an economic newspaper in the area. I will find out about it. Also, I will ask my old colleagues in the Chennai area about it as well.”