Lei Jun gets an annual salary of 10 billion in Xiaomi？ Did not give cash equity incentives.

　　Xiaomi Group (01810.HK) announced that Lei Jun, the chairman and CEO, received an annual salary of 10 billion yuan, which aroused widespread concern.

　　The salary of the five highest paid people disclosed in Xiaomi’s annual report on April 8. On April 8, the 2018 annual report released by Xiaomi showed that the annual salary of the five highest paid people in the Group totaled 10.218 billion yuan, of which the four employees with lower annual salary were all between 30 million and 100 million yuan, except for one employee whose annual salary was marked as "150 million yuan to 15 billion yuan". Based on this calculation, the annual salary of the highest paid Xiaomi employee was at least 9.818 billion yuan.

　　Screenshot of Xiaomi’s voluntary announcement on April 10. On the morning of April 10th, Xiaomi made a special announcement, confirming that the salary of a special person mentioned in Xiaomi’s annual report ranged from HK$ 150 million (equivalent to about RMB 128 million) to HK$ 15 billion (equivalent to about RMB 12.8 billion). The special person was Lei Jun..

　　However, the announcement clarifies that this part of wealth is mainly a one-time issuance of 636 million Class B common shares to entities controlled by Lei Jun on April 2, 2018. Moreover, as of April 10, the relevant shares are still held by entities controlled by Lei Jun and have not been sold.

　　Previously, Lei Jun promised to donate all the relevant shares for public welfare purposes after deducting any taxes payable.

　　The Paper checked Xiaomi’s prospectus and found that before Xiaomi went public, Xiaomi Company issued about 64 million Class B common shares to Smart Mobile Holding Limited controlled by Lei Jun as equity incentive in April 2018. These shares accounted for about 2% of the total share capital, which was close to 9.9 billion yuan according to the valuation at that time.

　　In the first financial report released by Xiaomi after listing in August 2018, Xiaomi also made relevant disclosures. The financial report shows that Xiaomi’s total salary expenses (including share-based salary expenses) are RMB 11.643 billion, an increase of 666% over the previous quarter, which is due to the one-time share-based salary of RMB 9.9 billion in the second quarter of 2018. At that time, people close to Xiaomi revealed to The Paper that this 9.9 billion yuan option reward was the gift package that the company rewarded Lei Jun on the eve of listing.

　　In 2018, Xiaomi’s annual income was 174.915 billion yuan, turning losses into profits and earning 13.478 billion yuan. On April 10th, Xiaomi Group opened at HK$ 11.60 (equivalent to RMB about 9.9 yuan), with a market value of HK$ 287.8 billion (equivalent to RMB 246.2 billion).