Equity incentives pulled from LeTV employees: report
Employee claims LeEco founder Jia Yueting broke promise to workers by selling staff equity in LeTV to Sunac China
Staff at Leshi Zhixin, or LeTV, a Chinese television manufacturer and a subsidiary of LeEco, were told that they no longer hold any equity in the company which they previously earned from the group’s incentive plan, China Securities Journal reported.
Jia Yueting, the founder of LeEco, sold 25% of LeTV’s registered capital to Sunac China for about 5 billion yuan (US$750 million), including 10% held by LeEco and 15% held by Xinyue Capital.
Xinyue Capital is a shareholder platform for LeTV staff, which means, Jia also sold the entire staff equity in LeTV to Sunac China.
“Though Jia, as the controlling shareholder of Xinyue Capital, is entitled to sell the asset, he broke promises to his staff by doing so,” said an employee of the company.
Yinhua Fund said on the company’s official website that it decided to revalue LeEco’s trading-suspended stocks at a price of 3.91 yuan per share. Compared to the price before suspension, which was 15.33 yuan per share, the company’s market capitalization has fallen by 75%.