Because after a simple calculation, Jimmy came to the conclusion that he now needs cash rather than options.
Options are more like a bet on whether the company will develop rapidly in the future.
If the company develops rapidly, an option worth one million today may be worth tens of millions or more next year. However, if the company starts to decline, an option worth one million today may only be worth 100,000 or even more next year. Exercise at a lower price.
All the board members sitting here felt that Ellis Law Firm would develop by leaps and bounds in the future, not only because they have the best team and the greatest reputation in the United States, but also because one of their biggest competitors, Smith The law firm has moved its focus to China. Although they have not given up their business in the United States, because their main focus has been transferred, the total volume of business in the United States has naturally declined to a certain extent. These are all Ellis Law Firms growth point.
But Jimmy knew very well that when he left here with ten key members, Ellis Law Firm would inevitably enter a period of rapid decline. In this case, what options were needed? Of course cash is the safest option.
So he said: "I am relatively short-sighted. When my eldest brother and my sister-in-law founded Smith Law Firm, they offered me 30% of the shares to join and start a business with them. I think the failure rate of starting a business is Gao, I don�t have a job where I can get paid monthly, so I didn�t agree. Now that you�ve given me options, I still think it�s safer than cash.�
After that, he added: "Let's do this. We will still sign an agreement for ten years, but I don't want one share of the options. I will also return all the options that were given to me before. Didn't Knight just say that these two hundred thousand options are for one year?" Can you divide at least 12 million, and will you divide more and more in the future? Okay, I will return the 200,000 options to you. In the next ten years, you only need to give me 10 million in cash every year. US dollars, even if the company's performance gets better and better in the future, and the 200,000 options can be divided into 20 million or more every year, I will not regret coming to you to change the agreement. In the next ten years, I only want cash. "
When Knight heard this, his expression was a little surprised at first, but soon returned to normal.
He knew Jimmy's character, which was cautious at best and reckless at worst.
In Chinese mythology, you can find an almost identical prototype, that is, Pixiu.
In other words, when it comes to money, this person can never get in or out.
Although he was already a senior partner of the law firm before, he was still unwilling to spend money to subscribe for even one option.
Generally speaking, in addition to board incentives, partners can obtain options through board sales. Most of them give a part and then sell a part. This also allows partners to contribute money to participate. Once they actually contribute money, they can You will truly regard yourself as a member of the law firm and work harder.
This method works for most people, except for Jimmy.
Jimmy's investment view is that anything except money can be used for investment, but money cannot.
If you can earn one million without investing money, if you invest 100,000 yuan, you can earn two million with a high probability, then he must choose to earn one million without investing money.
So wanting money instead of options at this time is indeed in line with his personality.
After thinking about this, Knight did not dwell too much on this issue and thought to himself: "No matter whether he wants options or cash, in short, he only needs to sign a 10-year contract with me to ensure that he will not regret it in 10 years." , it�s enough that she won�t resign from me. Since Steve Rothschild is behind her, as long as he stays in Ellis, I can rest easy! Now that the company is booming, he doesn�t want options. If he regrets his loss in the future, he can�t blame me again.�
So, Knight said very cheerfully: "No problem Jimmy! Since you insist on getting cash, then we will do as you say and sign a 10-year agreement. Every year I will pay you an additional bonus of 10 million US dollars to offset all your options.�
Jimmy reminded: "Also, you have promised me to double my basic salary, which is four million. My guaranteed income is US$14 million per year."
Knight waved his hand: "Jimmy, your thinking is a bit too conservative. 4 million is your basic salary and 10 million is your option cash. If you perform well, there will be specific performance bonuses and project bonuses. With your ability, it�s not a problem to make 20 million a year.�
Jimmy shook his head very humbly and said: "I know very well what my situation is. Let's not talk about bonuses. As long as you write the fourteen million in the contract, I can sign the contract at any time."
"Okay!" Knight smiled and said, "Then let's sign the contract as soon as possible, and I'll have someone prepare the contract."
Jimmy reminded him: "Oh, by the way, we haven't talked about the liquidated damages clause yet." JrNovels.com