Mir Moiz’s Weblog

Life is meaningful, only when one wishes to make it. We are creatures of time and we’ll wither away in it. The little moments of joy we find and create are all that will live with us.

Archive for Bloomberg

Dubai – What to expect!

Debt seems to be the number one killer in todays economic space. It’s becoming a necessary evil that no one is certain for when it will bite!

With the US looming into similar shadows, what can be expected of all those dependent economies across the globe. The UAE is vastly dependent on the trajectory of the US economy. It visibly proved its interlinked relationship in the last financial crisis. What can now be expected with Dubai itself being so heavily debt burdened, remains to be seen.

This is what Bloomberg projects:
Dubai Debt Costs to Rise on $7.1 Billion Expo Spend: Arab Credit

In this increasingly uncertain climate one thing that can be taken as certain is that only those economies will show stability or growth that are self sustained. Those who have their debts in control and those that have been prudent not to let trade deficits take place.

In times like these it’s always the basic economic formulas that work.
Do not spend beyond your means and invest wisely.

© MIR

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CEO Sharing Bonus. Now that is News!

Lenovo Chief Yang Shares Bonus With Workers a Second Year

Lenovo Group Ltd. (992), the biggest personal computer maker, said Chief Executive Officer Yang Yuanqing will share at least $3 million of his bonus with workers for a second straight year after posting record sales.

About 10,000 workers will get payments this month to recognize their contributions, Gina Qiao, senior vice president of human resources, said in a memo to some workers. The memo was confirmed by spokesman Jeffrey Shafer, who said the total payment will be about $3.25 million.

Lenovo posted revenue of $34 billion and PC shipments of 52.4 million units in the 12 months ended March 31 as the company gained market share and expanded sales of smartphones and tablets. The 48-year-old Yang, who gave $3 million from his bonus a year earlier, led the company past Hewlett-Packard Co. (HPQ) in the June quarter.

“This is quite rare, especially for a chairman of a Chinese company, to use his personal money as a bonus to reward employees,” said Kirk Yang, a managing director at Barclays Plc in Hong Kong who rates the shares overweight.

Lenovo, which has headquarters in Beijing and Morrisville, North Carolina, rose 0.7 percent to HK$7.55 in Hong Kong trading. The stock has climbed 7.6 percent this year while the city’s benchmark Hang Seng Index has dropped 2.1 percent.

Payments will be made to Lenovo staff in 20 countries, while about 85 percent of the recipients are in China, Shafer said. Yang spends time in both the Beijing and Morrisville offices, the spokesman said last year.

Month’s Pay

“This payment is personally funded by Yuanqing,” Qiao said in the memo. “He believes that he has the responsibility as an owner of the company, and the opportunity as our leader, to ensure all of our employees understand the impact they have on building Lenovo.”

The average payment of about $325 is almost equal to a month’s pay for a typical city worker in China. The average annual wage of urban workers at private companies last year was 28,752 yuan, the National Bureau of Statistics said in May. That’s equal to about $392 a month.

Yang was paid $14.6 million last year, including a bonus of $4.23 million and long-term incentive awards of $8.94 million, according to the company’s annual report. Yang holds about 744 million shares of Lenovo, or 7.1 percent of the company’s outstanding stock, as of the end of March, the report said.

Dell, HP

Meg Whitman, CEO of Hewlett-Packard, received nearly $15.4 million in fiscal 2012 after the company posted a net loss for the year. Michael Dell, CEO of Dell Inc. (DELL), was paid $13.9 million in the year ended Feb. 1 when the company posted lower sales and earnings and its share price declined.

Lenovo had more than 35,000 employees globally at the end of March. Employees who received the bonus from Yang were mostly those in manufacturing paid on an hourly basis, who are not eligible for other bonus programs or sales commission, Shafer said.

Other executives to share their bonus include Oleg Deripaska of the world’s largest aluminum producer United Co. Rusal (486), who gave his $3 million bonus for 2012 to 120 employees, UPI reported in July. Simon Wolfson of Next Plc (NXT), the U.K. clothing retailer, awarded his bonus of about $3.7 million to 19,400 staff, the Telegraph reported in April.

To contact Bloomberg News staff for this story: Edmond Lococo in Beijing at elococo@bloomberg.net

To contact the editor responsible for this story: Michael Tighe at mtighe4@bloomberg.net

Source: Bloomberg