With the sale of Dezan Shira & Associates to Ascentium, I have been touring most of my (40) offices to bid farewell to the staff, many of whom I have worked with for decades. For many years, I operated the business with a main equity board of just four directors and shareholders, with myself holding the majority. That allowed for plenty of discussion over key development issues but meant that I could make a decision on the very rare occasions we could not reach a majority decision.
That changed slightly a few years ago when to retain other key personnel we made a decision to provide non-voting ‘b’ shares to another ten employees who warranted extra dividends and to help the company retain them. They received annual bonuses but were not involved in major corporate decisions. However, I also felt the need to reward all other personnel in company once I knew the business was about to be sold. To do that, we selected another 19 key employees in various locations throughout Asia and I provided them – free – with a small amount of non-voting equity each from my own holdings – worth about US$2.5 million. That mattered because part of the sale involved Asentium buying100% of Dezan Shira & Associates, meaning these additional 19 shareholders all each received a bonus. Some were also given shares in Ascentium.
That left the other 400-off staff I wished to thank for their loyalty and hard work. To cater for them, I allowed US$400,000 of the firms retained bonus to be paid out as a dividend to all the staff – averaging US$1000 each – as a cash gift. The amount was staggered, depending upon length of service. New recruits up to 5 years received about US$800, employees between five and ten about US$1,000, and the few hard core staff who had been with us for far longer received US$2,000. In Beijing, this lead to an amusing bonus, where the much-loved office Aiyee (maid/cleaner) received that offices highest award. Tears were shed. Even the lowest level personnel retain significant value in a businesses social make up if they are consistent, are allowed to be ‘part of the team’ and provide value and honesty when helping mundane yet important things such as a replenished pantry, clean kitchen and arranging staff birthday cakes and coffees as well as emptying bins, cleaning up and watering the plants.
Beijing was also special because I had lived there for close to ten years, following seven-year stints each in Hong Kong, Shenzhen and Shanghai. I had established our Beijing office in 1994, two years after Dezan Shira was initially set up in Hong Kong and Shenzhen. After that, I commuted on a regular monthly basis, prior to moving full-time to Beijing, where I lived at the St. Regis Hotel apartments, and then at an apartment overlooking Ritan Park.
Of the Dezan Shira & Associates main equity partners, two (Sabrina Zhang and I) took 100% equity exit and have retired. Alberto Vettoretti and Adam Livermore also sold all their equity but were retained by Ascentium and provided with shares in that company. So the Beijing farewell was a double-event, for both Sabrina – the Beijing Office Partner – and I, as retiring Chairman.
Here are a few photos of the event. A lot of tears were shed.
