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?”