Chapter 7 executive board of directors

It is impossible to say which of the initial money is counted as equity, and there is no way to distinguish it when counting shares later.Not to mention it was impossible to calculate, we didn't even understand it at that time, and there was no "Company Law", so everyone said things without even a basis.Therefore, the basis of our partners' cooperation at the beginning is not money, but our common ideals, beliefs and pursuits.When defining the interests of partners for the first time, we determined a principle, adopting the model of Shuibo Liangshan - "the seat is orderly, and the benefits are the same". At the beginning of 1993, we defined the relationship of interests. Before that, the partnership relationship was fictitious and had no equity basis. After digging the first barrel of gold, we began to establish a partnership relationship based on property, and at this time we absorbed Pan Shiyi as a partner.At this time, I put forward another point of view: According to the historical process, no one can do without anyone, and everyone’s role is 100%—if he is there, he is 100%; if he is not, he is zero.From this point of view, we adopted the method of averaging when determining the equity.The problems that private enterprises will face are seat ranking, gold and silver distribution, and honor and disgrace.

Since it is equally distributed, the right to speak is the same. We have established a standing board of directors, and major decisions are made by six people.Later, two more people came, we call it "6+2", which can be regarded as attracting talents, but they have a lot of opinions, because they can't get into the circle of 6 people. Before 1995, the internal coordination of the six people was very good. At that time, with Hainan as the core, they were scattered in nearby provinces such as Guangxi and Guangdong, and everyone often met; in 1995, the company dumped one piece of business to Beijing, one piece to Shanghai, and another to Changchun.At that time, the Internet was not available, mobile phones were built with bricks and mobile phones, and communication was limited. The problem caused was information asymmetry. It became increasingly difficult for the six people to coordinate according to their personalities, regions, and management companies.I am the chairman in Beijing, Pan Shiyi is the general manager, and I am also the chairman in Hainan, so I have the most information.Others couldn't fully communicate with the other 5 and started to form some disagreements on things.This is a dilemma. No matter how hard we try, we cannot reach a consensus on many things.

On the other hand, the structure of resources and interests has changed, and we still maintain egalitarianism in terms of personal income, divide gold and silver on a large scale, and wear a whole set of clothes.At that time, three local rules were determined: first, no second source of income is allowed; second, no transfer of assets, no foreign identity; third, all gray income obtained from the company's business will be returned to the company, and the six people jointly Control the money.Today, at this level, no matter how many times the account has been checked, no one has ever had a problem.Therefore, when we parted, there was no complaint, no one was serious about who earned more and who earned less.

But there is a problem on another level, that is, differences in views and understandings of business due to different career orientations, personal abilities, and majors studied.The allocation of resources is the first contradiction. In real estate, some people say Shenzhen is good, some people say Xi'an is good, and some people say Beijing is good, but our resources are limited. The 6 people think each other's plan is not good, and the executive board meeting to discuss investment often takes half a day, and no one can convince the other.I remember a meeting in the Poly Building where a person proposed a project in Zhanjiang. Everyone thought it was not possible, and he slammed the door angrily. But we wanted to maintain the discussion, brought him back and listened patiently to him , In the end, he still didn't do it, which made him very angry.Later, when another person mentioned the project in Shenzhen, he also disagreed—the six of us implemented a one-vote veto system.Beijing allocated the most resources. Later, various places began not to go through the executive board of directors. They came directly to Beijing to ask Pan Shiyi to borrow money, and borrowed if they didn't invest.This is where the biggest problem arises - resource allocation conflicts.This is another conflict of interest issue, because the more resources you get, the greater your chances of success and the greater your personal fulfillment.At that time, Vantone Group Company had almost become a virtual headquarters. The main business and people were all in other places. The branch had its own interests. ambition.There is only one chairman and one general manager in the whole stage. Whoever gets the specific projects in various places is the boss.

Gradually, individuals have different views and understandings of business. Some people are unwilling to do business, some are unwilling to do finance, and there are differences in company strategy.People may let me do what I insist on once, and another person insists on doing it and everyone can let me do it, but when the fifth person has no resources to give up, then this person will have an opinion; a project that is forced to launch If it goes well, it's fine, but if it doesn't go well, it will lead to complaints.The most disturbing thing among them was the acquisition of Northeast Hualian. At that time, there were internal disagreements, and Gongquan and I were the ones who took the lead. They spent 70 million on the acquisition, which was an early case of buying and selling a listed company (the third acquisition of a listed company in China) case).However, the subsequent integration has not been smooth. We have been sending people to clean up the situation. We don’t make money by spending money, people and energy, and the internal opinions are very strong. In the end, we lost 40 million yuan.At this point my authority was challenged.Due to the different views on the business direction due to the allocation of resources, and sometimes mutual compromises, the direct result is that the six people have no authority among each other. At this time, the inevitable separation has already been born.

Different from other private companies, we have no financial conflict between individuals in the first interest (at that time, many private enterprises had problems at this level), but in the second interest, the direction of business (corporate strategy). ) had an irreconcilable conflict with corporate management. As a result, the six people were very distressed, because they had a common value base of struggle, and everyone knew each other before Wantong. Our ideals and feelings are the same, and we don't want to separate. From 1994 to 1996, six people got together to discuss how to go when they had nothing to do, and some of them were so uncomfortable that they cried.It is difficult for outsiders to imagine the extent of our pain at that time.

At that time, we sold a piece of land in Hainan and made a profit of 50 million. Later, something happened to the buyer, and they bit us back, saying that we had a problem and wanted us to return the money to him.The relevant departments have filed a case, and a big leader ordered to seal our account. It is difficult to decide whether to compromise or not in Hainan.Others think that we have not broken the law, but the danger of merit judgment is very high, and we may be put to death.In the end, with tears in his eyes, Gong Quan cut off the phone and refused to listen to us, and agreed to sign a covenant under the city.At that time, the other party was very unreasonable, and finally forced us to sign in the box of the nightclub, not to mention refunding the money, and also gave him 26% interest.This single business did not follow the principle of consensus among the six people, but Gong Quan believed that this time saved us.Others expressed dissatisfaction, blaming him for not even answering the phone calls; later they bought the land back and lost 100 million inside and outside, which was our only loss in Hainan.Afterwards, Gongquan felt particularly wronged. Once he held a meeting on a mountain where Hong Xiuquan uprising in the suburbs of Nanning, and brought up this matter again. Gongquan was extremely painful. He ran to the mountain crying alone. Everyone is very worried about the lack of people. There are too many complicated emotions in it.