Detailed on CNN earlier this week, Lenovo CEO Yang Yuanqing decided to distribute the majority of his yearly bonus to approximately 10,000 junior employees within the PC manufacturing company. This included a variety of positions such as receptionists and cell center assistants as well as production-line employees on the floors of the factories were Lenovo laptops and desktop computers are built. Each worker will receive a bonus of about 2,000 yuan which is $314. While that amount may seem small to an American factory worker, the average salary for a production line working at Foxconn is about 1,500 to 2,200 yuan. This means production-line employees at Lenovo got a one month bonus direct from the head of the entire company.
Lenovo employees were informed of this bonus at the end of last month through an email. Called the “Yuanqing special reward,” the company’s CEO noted the strength of the production line workers in regards to his reasoning to give the money away. The $3 million funding the bonuses was originally given to Yuanqing for meeting company goals in regards to the performance of Lenovo.
During May 2012, Lenovo management reported sales of nearly $30 billion which was approximately 37 percent higher than the previous year. This pushes Lenovo into the number two spot of PC manufacturer around the world and may outpace HP by the end of the next fiscal year. Yuanqing could easily afford to distribute the $3 million to his employees as he earned about $14 million according to the company’s annual report.
In addition to exorbitant yearly salaries, CEO’s typically have these types of yearly performance bonuses if the company meets specific goals at the end of each fiscal year. For instance, HP CEO Meg Whitman will make approximately $6 million if certain expectations are met and Yahoo’s new boss Marissa Mayer can potentially make an extra $2 million each year according to her contract.