Chapter 756 – Microsoft Board of Directors meeting
Feng Yu was not giving an excuse when he said he had something on. He really had something to do. He needs to read up about the members of the board.
Feng Yu only remember one of the board members in this era. Steve Ballmer. He will also be Microsoft’s CEO in the future. He was not a co-founder and did not invest a single cent. But he got the company’s shares.
At the start of Microsoft, Bill Gates owned 49% of the shares, and Paul Allen owned 35%. Steve Ballmer had 8%, and the rest of the employees had the remaining 8%. Of course, these were all voting shares.
During the days when Paul Allen left Microsoft, he invested in many companies. But most of these companies failed. Just last year, a TV company he invested, rejected his request to increase his stakes. In a fit of anger, he sold all his shares. But after he sold his shares, that company’s value raised by more than 50%.
Paul Allen had also argued with Bill Gates over shares more than once. Bill Gates told Paul that he sold his shares to raise money for his investments, and this would lower their stakes in the company. He should just sell his shares to Bill Gates. But Paul Allen felt he had sacrificed before in the past, and he should not do it again. He was also not happy when Bill Gates gave Steve Ballmer so many shares.
Steve Ballmer was now Microsoft’s Vice President. The other directors, except for one director from an investment company, were holding positions in the top management. What surprises Feng Yu was, there were only 8 directors on the board.
Seems like Bill Gates loves being in control. There was an even number of directors, and when it comes to making decisions, they will decide base on the % of the shares. That means Feng Yu, who owns only 2% voting shares, does not have any say.
In Feng Yu’s previous life, when Bill Gates retires, there were 10 directors on the board. 8 years after that, Microsoft increased the number of directors to 11. That was the time when Bill Gates was only an ordinary director on the board. He was no longer the biggest shareholder.
Feng Yu looked through all the members of the board. There was only one person he should pull over to his side. This person was Steve Ballmer because he was trusted by Bill Gates and will become Microsoft’s CEO in a few years. Most importantly, he and Paul Allen did not get along well.
If Feng Yu could influence Steve Ballmer to make some wrong decisions, like stopping Microsoft from entering the hardware sector, then Lenovo will increase its chance of becoming the top PC manufacturer in the world!
……
A few days later, Microsoft board meeting started. All the directors were shocked to see Feng Yu in the meeting room. Who is this young man? He looks like a Chinese. How did he come in?
Paul Allen took a glanced at Feng Yu and sneered. Steve Ballmer was looking at Feng Yu with interest. This person is the new director Bill Gates talking about?
The other directors did not know about Feng Yu, and there will be a new member on the board from today onwards. The new member is this young man.
The other directors saw the Chairman of the board nodding and smiling to that young man. That means they knew each other. From Paul Allen’s reactions, he should also know this person.
They were curious about who this person was, and what was he doing at their board meeting.
“I have something to announce in this meeting. Feng, from the far east, is the mysterious tycoon who has been buying our shares.”
The directors were surprised and looked at Feng Yu. Feng Yu only nodded and did not even stand up to greet everyone. The rest of the directors also did not mind. After all, Feng Yu was richer than them.
But Paul Allen was pissed. He felt Feng Yu was rude. But he did not think about himself. He also looks down on the other directors.
“Paul and I had exchanged some shares, about 1% each, with Feng. That means Feng currently owns 2% voting shares. So, I nominated Feng to enter the board of directors.”
Bill Gates was the largest shareholder and have the authority to nominate Feng Yu to enter the board.
Many people thought that all members of the board must be the shareholders of the company. But this was not true. The board is formed during the shareholders’ meeting through voting. Usually, the shareholders will nominate their self. But there are also board members who are not the shareholders. However, this is not common in China.
Those non-shareholders who had entered the board will generally be rewarded with the company’s shares. They will eventually become a shareholder of the company.
This was why even if Bill Gates did not nominate Feng Yu, Feng Yu could also nominate himself. But if Bill Gates rejected Feng Yu’s applications, Feng Yu will also not be able to enter the board.
Actually, Bill Gates and Paul Allen or Steve Ballmer can decide whether to let Feng Yu enter the board. Bill Gates was not nominating Feng Yu to join the board today. He was just informing the rest of the members.
The board of directors is chosen by the shareholders to lead the company. The members can also be removed. In the past, some directors were removed from the board. Those that opposed Bill Gates’s decisions were all replaced.
Bill Gates was the biggest-shareholder, Chairman, President, and CEO of the company. In many smaller companies, the Chairman and the CEO were the same people. But most large corporations had a more complex structure. That’s why the board will appoint two people to manage the company and at the same time, check on each other.
Steve Ballmer was the Vice President, but he is currently doing the work of a President.
After the members heard what Bill Gates had said, clapped to welcome Feng Yu. Only Paul Allen continued to sip on his coffee.
Everyone was looking at Feng Yu. This person will be the newest member of the board? Seems like Bill Gates was supportive of him, and Paul does not. These two men have conflicts again?
“Ok. The welcome ceremony shall end here. Now, I appoint Feng as the Vice-President of Asia-Pacific region. He will be in charge of China’s business.”
Everyone immediately understood why the new member was Chinese. He should be from China. Microsoft is going to enter the Chinese market?
Steve Ballmer asked: “What businesses will he be in charge of?”
Feng Yu replied before Bill Gates: “Everything. I will decide on all the businesses in China, and will not interfere with the company’s other matters.”
Steve Ballmer frowned. China is an essential market for Microsoft. Is it too rush to hand it over to this young man? Although Feng is also a shareholder, that does not mean he is a good manager.
Why did Bill Gates agree to let him be the overall in-charge of China? This young man is someone special in China?
Bill Gates added: “Feng can help Microsoft takeover the whole Chinese market. Don’t worry. Is there anything else to discuss? If not, the meeting shall end now.”
This board meeting was set up just for Feng Yu.
Steve Ballmer noticed that Feng Yu had smiled to him a few times, and he was puzzled…….