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CEO Gives Part of His Bonus to Employees

Original Content Publication Date: 07/19/2012

Yang Yuanqing, CEO of Lenovo, distributed $3 million from his bonus among 10,000 junior-level employees. The employees, such as receptionists, production-line workers and assistants, each received an average bonus of 2,000 yuan, which is $314, in the name of their CEO. Yang had received the additional $3 million boost in his bonus after the company had its best fiscal year performance.

Main Points

  • Lenovo had a "record-setting year" in the fiscal year leading to an approximately 20% extra bonus for the CEO
  • Lenovo CEO decided to distribute the $3 million to employees, rather than keeping it
  • About 10,000 junior level workers received about $314 each

Discussion Questions

  1. What outcomes would you expect when a business leader does something like this?
  2. As an employee how would this bonus make you feel?  What short-term and long-term impact do you think it would have on your performance?
  3. What are the potential downsides of this action?

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