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1
/ How does the board secretary choose a company that suits him in the future? /
When choosing a board secretary job, it is necessary to have a correct general direction, not to pursue perfectionism too much. The chances of pursuing a perfect business with the hope that the stock will double next year or become the next Xiaomi are very unlikely. After all, China has only one Tencent and one Huawei. Therefore, we need to focus on the medium and long-term value of the enterprise.
As a board secretary, you need to choose a platform that can carry your own value from an investment perspective:
First, it is necessary to determine the medium-term development trend of the industry in which the company operates. In the next two to three years, whether the overall trend of the industry in which the company is located is good.
Second, it is necessary to assess the nature of the industry and the competitive position of the company. See if the company's position in the industry is solid and has good development potential.
Third, we must pay attention to the governance and standardization of the company. As the secretary of the board of directors of a listed company, he assumes the role of the first responsible person. If a listed company with serious violations is chosen, the professional risk of the board secretary will be high. Therefore, it is crucial to choose a reliable business, otherwise it is equivalent to a time bomb buried around you all the time.
Finally, pay attention to the style and qualities of the core entrepreneur. A good core entrepreneur should have the ability to understand business, understand management, be responsible, have a big heart and have sustainable learning ability.
2
/ Why is board secretary a high-pressure, high-risk profession? /
As a board secretary, it seems that there is not much desk work, but the pressure in my heart is very great. It is often said that if the secretary does a good job, "the power of one person is better than the power of a thousand", and if it is not done well, it will lead to "one person turning the power of a thousand people into nothing". If good results are not achieved in capital actions such as mergers and acquisitions in the capital market, employee stock ownership plans, etc., all stakeholders will complain about the board secretary. Therefore, the secretary of the board of directors is under great pressure.
In addition, in terms of information disclosure, the board secretary also faces higher risks. Board secretaries need to learn to protect themselves, and with so many investors every day, they can make major mistakes if they are not careful. While some mistakes may not be so significant, they pose occupational risks once traced.
3
/ How much influence does the board secretary have on a company's stock price and status? /
The link between stock prices and personal wealth goes far beyond that, it is closely related to the growth and development of the company. Different companies have different styles of stock price performance and can be divided into four types.
The first is the soaring type, which is a stock price performance that rises every day and moves forward.
The second is the steady rising type, and the stock price maintains a stable upward trend.
The third is the high and low type, where the stock price fluctuates greatly, sometimes rising and sometimes falling.
Finally, it is not a pestilence type, the stock price performance is stable, there is not much fluctuation, and it is relatively safe.
As a board secretary, you need to be as familiar with the company's stock price movements as a sailor. You should know how a company's share price might react after an announcement. You need to understand the general trend of the company's stock price in the coming month, half year, and year. The judgment of this trend is crucial for the company's important actions such as future mergers and acquisitions, expansion, and equity incentives. As the interface of the capital market, the secretary of the board of directors has always been in this role.
A good board secretary can roughly predict the range of the company's stock price in the coming period through his understanding of the industry and capital market. This is important for the company's major capital actions, such as refinancing, equity incentives and major asset restructuring.
If you don't have the ability to analyze and judge a company's stock price, you may unconsciously make wrong decisions that lead to irreversible results. These mistakes can lead to the company's development stalling for half a year to a year, or even have an impact on the survival of the entire company. Therefore, the secretary's judgment of the value of the capital market and the understanding of the overall framework are very important. It's not just about the wealth of the company's shareholders, it's about the growth of the company.
4
/ How to make systematic work arrangements in the face of the capital market? /
First, the vagaries of capital markets are awe-inspiring. Every year, brokerages select the top ten gold stocks, but the probability that these stocks will outperform the market the following year is low. There is rarely a sector in the A-share market that has risen for two consecutive years, and the logic of the past and the future is bound to change.
Second, the board secretary needs to clarify the time coordinates of the market capitalization work. Will the company's share price rise in the coming month? Or the next half year? Or is it a year or three years in the future? Different time coordinates mean different forecasts and decisions.
Third, the work of the board secretary needs to be forward-looking and systematic. When faced with important decisions, it is necessary to establish a cognitive framework for capital markets. This requires systematic thinking and forward-looking judgment, and at the same time to find the core driving force of the company, and not blindly follow the trend. For example, if a company's stock price has risen 3-5 times in the past year, the board secretary should think about why there is such an increase, is it the result of the company's continuous growth? Or is it affected by the overall rise of ChiNext? Or the overall growth of your industry? At the same time, the logic of the past and the future must be different.
Fourth, find the core drivers of market capitalization and judge the difference between the future and the past. The board secretary needs to grasp the possible changes in the future, identify the uncontrollable factors in the market changes, and make systematic arrangements for the work of the entire listed company based on this.
Fifth, guided by market capitalization and capital market, formulate the company's corporate strategic plan for the next 3-5 years. The capital market is an important reference indicator when formulating planning. In the medium and long term, the capital market is relatively efficient, and it will allocate resources and capital to the sunrise sector with high growth. Therefore, the board secretary needs to have a sense of direction. For example, when the capital market is unanimously bearish on an industry, thankless initiatives such as mergers and acquisitions or equity incentives should not be blindly pursued.
5
/ How to understand the role of the board secretary in formulating strategies based on the capital market? /
The capital market provides a platform and support for enterprises to evolve from start-up to scale. As the secretary of the board, he needs to help the company find the core driving force of the industry, which plays an important role in the company's medium and long-term growth, strategy execution and formulation. Here are some positive and negative examples:
One of the positive cases is companies in capital-intensive industries such as Ewaru and Bishui Source. These companies have used capital to drive expansion and achieve scale. Without going public, it would be difficult for them to complete such a transformation.
Another example is representation of labor-intensive industries such as Aier Ophthalmology. They use a partnership model to drive the growth of the company. This model effectively integrates human resources and contributes to the success of the business.
In negative cases, some companies use the equity participation trading model to pursue performance, which may risk being distorted. There are also opportunists who blindly follow hot industries, such as pursuing gold mines the year before, pursuing the game industry the year after, and turning to the film and television industry this year. This blind pursuit of hot spots in the market value management model gradually fails, which can lead to chaos, and ultimately damage the company's long-term development.
Board secretaries need to learn from these cases and clarify the principles and strategies of market value management. Pay attention to the core driving force of the industry, avoid blindly chasing hot spots, and formulate long-term and stable development strategies to ensure the company's sustainable growth and value creation.
6
/ What are the key points to realize the value of enterprises in the capital market? /
First, we must pay attention to fluctuations and cycles, learn to follow the trend and use strength
Second, hot spots and rotation: photovoltaic, gold mine, mobile game...
Third, do a good job of strategic positioning, a series of actions to have a combination, to have a systematic arrangement, to find the right investors for you, from the concept of sales, identify and manage investor expectations. This is a very systematic and professional course.
7
/ What role does the board secretary play in the company's equity incentives? /
At present, a large part of the board secretary is concerned with how much equity there is, how to divide it, and to whom. These are actually issues that human resources should be concerned about. What the board secretary should really care about is when to engage in equity incentives, and what impact this time has on the success or failure of the company's future equity incentives. From the time of equity incentive to the completion of the filing by the China Securities Regulatory Commission, what kind of impact does the change in stock price have on the company's future earnings per share, in the case of future option cost locking, the company's core backbone's expectation of equity incentive has reached a certain level, what will happen after one year of exercise in the future, how the market develops, how the sector develops, how the company's performance develops, and whether these equity incentives can bring real wealth to employees, which has brought real expenses to the company.
If all shareholders give it it will already be included in the company's expenses. For example, on March 24, 2014, the company granted 11 million stock options to 137 incentive recipients at an exercise price of 36.23 yuan per share. In August, due to the annual profit distribution, the exercise price of stock options was adjusted to 22.61 yuan per share. The latest share price is only 15.83 yuan.
On April 16, 2014, the company granted 4,535,400 options to 134 incentive recipients, with an exercise price of 14.57 yuan per share, but the company's latest stock price was only 13.20 yuan. In addition, 9 companies, including Sudaweig and Shunwang Technology, can now buy the company's shares at a lower price in the secondary market.
8
/ What is the development path from the Zheng Dynasty to the Board Secretary? /
At present, the regulatory authorities require that securities representatives of listed companies also need to have the qualification of board secretary. Therefore, in theory, the witness can be regarded as a quasi-board secretary group. As for whether it can become a board secretary from the securities representative, in addition to its own efforts, there are also factors for the company to choose to appoint.
From the actual situation, many securities representatives mainly assist the board secretary in completing compliance work in the process of work, including the preparation of meeting affairs of shareholders' meetings and board of directors; Preparation of information disclosure documents such as announcements and annual reports; Assist in receiving investors and related research institutions. If you can provide professional opinions or insights on major development matters of the company in addition to the aforementioned daily work, it will also be a plus. In general, in addition to the aforementioned experience and ability, there is a veil between the witness and the secretary, and the difficulty lies in how to grasp the opportunity to break the cocoon.
9
/ How can board secretaries supplement their financial knowledge? /
Q: I am currently the assistant general manager of the enterprise, but I am not from a financial background, and I do not have a very deep understanding of financial knowledge, if I want to develop in the position of board secretary, what is the demand for financial knowledge, can I read the report, or do I need to master it in depth? If you are a percentage, what is the proportion of financial and other knowledge?
A: There is indeed a trend at present, that is, the financial controller is also the secretary of the board of directors. Obviously, having financial knowledge will be a plus for a good position as a board secretary, but it is not the only requirement. Many listed company board secretaries work closely with CFOs, which can also play a great value. Specific to the board secretary himself to master financial knowledge, we recommend enriching yourself from three dimensions:
(1) Improve their ability to deeply analyze the operation of business systems from the perspective of management accounting, which is very helpful for understanding corporate strategy and strategy implementation;
(2) Familiar with the basic financial accounting standards and treatment methods, so as to effectively save the communication cost with the financial department, and even put forward their own suggestions or opinions from the perspective of the financial report of listed companies;
(3) In terms of capital operation, it is also necessary to understand the tax treatment. Financial statements are only the actual performance of the final operation of the enterprise, and it is the key to go behind the financial statements to describe the value of the enterprise and shape the value. If we had to give a percentage, we feel that good financial knowledge and financial analysis skills can account for at least 40% of the knowledge structure of an outstanding board secretary.
Board Secretary Classroom is looking forward to your joining!
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The board secretary classroom is mainly based on the practical operation training of the capital market, and the course is opened around the topics of listing counseling, board secretary practical operation, equity incentive consulting and practice, corporate governance, financial research and other topics, helping students establish systematic knowledge and accompany the growth of capital talents.
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Board Secretary Practical Operation Seminar