At this moment, Knight was unaware that Jimmy had already devised alternative ns.
Despite his hesitance to part with the 200,000 shares of options, Knight ultimately decided to relent, especially considering the powerful Rothschild family backing Jimmy. He dered, “Alright! 200,000 shares is 200,000 shares! With 200,000 options and an annual ie of 12 million US dors, we’re on rtively solid ground. As our business continues to flourish, the annual dividends will surely increase even more. Jimmy, your potential at Ellis Law Firm knows no bounds!”
Although Knight made this decision with the resolve of a hero making a significant sacrifice, Jimmy’s expression darkened once again.<fnfb8a> For more chapters visit Find[?]ovel</fnfb8a>
This was because, after a quick calction, Jimmy realized he needed cash more than he needed options.
Options felt more like a gamble, relying on the assumption that thepany would thrive in the future.<h3 style="background-color:DodgerBlue">
If thepany experiences rapid growth, options valued at one million today could soar to tens of millions or more within a year. However, if thepany falters, those same options might only be redeemable for a mere fraction of their value—perhaps just one hundred thousand or even less—by the following year.
All members of the board believed that Ellis Law Firm’s future was bright, not only because they boasted an exceptional team and ster reputation across the United States, but also because one of their mainpetitors, Smith Law Firm, had shifted its focus to China. While they hadn’t abandoned their U.S. operations entirely, their overall business in the States had naturally declined, creating ample opportunities for Ellis Law Firm.
However, Jimmy was acutely aware that once he departed with his ten key colleagues, Ellis Law Firm would likely face a period of swift decline. In such a scenario, what value would options hold for him? Clearly, cash was the safest choice.
Thus, he stated, “I tend to be short-sighted. When my older brother and his wifeunched Smith Law Firm, they offered me 30% of the shares to join them. I declined, believing that the risk of starting a business was too high and that a steady paycheck from employment was a safer bet. Now, as you offer me options, I still feel that cash is a more secure option.”
He continued, “Let’s do this: we can still sign a ten-year agreement, but I don’t want any options, and I will return all previously granted options. Knight just mentioned that these 200,000 options could yield at least 12 million annually, potentially increasing over time. Instead, I will return these 200,000 options, and for the next decade, you only need to provide me with 10 million US dors each year. Even if thepany’s performance improves and the options could yield 20 million or more annually, I won’te back seeking to renegotiate. For the next ten years, I simply want cash.”
Upon hearing this, Knight’s initial surprise quickly faded to his usual demeanor.
He understood Jimmy’s character well. To put it positively, he was prudent; to put it bluntly, he was frugal.
A figure from Chinese mythology that closely resembles him would be Pixiu, a creature known for hoarding wealth.
In essence, this was someone who ensured money flowed in but rarely let it flow out.
Even as a senior partner at thew firm, he had been hesitant to invest in a single option.
Typically, aside from board incentives, partners could acquire options through board sales, often receiving a portion and selling a portion, allowing them to invest their own money. This investment made partners feel moremitted to the firm and motivated them to work harder.
While this strategy worked well for most, it certainly did not apply to Jimmy.