Lenovo CEO Gives Away Bonus to Employees, Why American CEOs Should Follow Suit

Lenovo CEO Gives Away Bonus to Employees, Why American CEOs Should Follow Suit

The CEO of Lenovo, Yang Yuanging, has taken a step towards making corporations’ compensations schemes more equitable between CEOs and the rest of the employees. Yuanging, who recently received a bonus of $3 million, decided to give away the bonus by distributing it among 10,000 junior level employees – each of whom got roughly $314.

Yuanging, who led over Lenovo’s best fiscal year ever, helped the company increase its net profit by 73%, "a record-setting year” for the Chinese multinational information technology and electronics company – which recently launched a host of new products and services including no-contract broadband plans for its mobile computers.

Though $314 doesn’t seem like a lot of money, now Lenovo’s junior employees will count with some extra money to buy a new cellular phone or take a date out for dinner. However, Yuanging’s gesture will go a long way for the company. Besides being an acknowledgement of these employees' hard work and dedication, the $314 bonus will be an extra motivator for an already motivated and highly performing team -- which will likely improve its performance in the upcoming fiscal year. 

And that is why it would be smart for American CEOs to try this new formula. 

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