Today we will explain the principles of WEDOS Internet. It will of course be about setting rules in relation to potential shareholders.
Why these principles must be established
In order for a company to function properly, certain rules need to be clearly and precisely defined. We consider the following to be the most important:
- shareholder awareness – we believe that without mutual communication there is no good cooperation. We want to keep you regularly informed about everything that is happening in the company.
- Staff pay and remuneration – we believe that the rules relating to pay and incentives for managers and the incentive component of pay for all staff are important. The salary and incentive component may seem wasteful at first glance, but we believe that shareholders, like us, will understand the importance. It’s not the machines that make the company, it’s the people!
Further details (including additional points) follow.
General principles
We want to avoid any doubts and inconsistencies and misunderstandings in the future. That is why we communicate our ideas clearly and openly in advance.
The following are approved by the last Annual General Meeting of the Company. Decisions may be amended by the next general meeting.
Principles towards shareholders
If the company generates a profit, then after meeting the legal obligations (reserve fund and payment of previous years’ losses), a dividend will be paid to shareholders after the above mentioned incentive components have been paid.
The creation and payment of dividends, along with the growth of the company, should be a priority for management and employees and shareholders.
Maximum information for shareholders
All shareholders will be regularly informed about the state of the company as well as about major changes in the company. Today, we’re going to lay out some basic ideas about what and how often we will inform our shareholders.
Most communication will be done through a dedicated web site in the customer administration area that will be accessible only to our shareholders.
Monthly report
Regularly, no later than 15. The following month, we will present a report describing the development of the market situation and our position, changes in the company.
Quarterly report
Periodically, no later than 30 days after the end of the quarter, we will present a quarterly report to augment the regular monthly reports. It will also include financial information on turnover, costs, etc.
Annual Report
No later than 30 days after the financial statements are prepared, we will submit a detailed report for the past calendar year, which will also serve as an annex to the auditor’s report or annual report.
Ongoing information
On the website, which will be reserved for shareholders, we will keep you informed about upcoming news, what we are planning for the coming period and what we are currently working on.
Extraordinary information
In the event of any extraordinary matters, we undertake to keep our shareholders informed.
Plans
We will also discuss our plans with our shareholders because we want to hear their views.
Voting on matters of principle
We will vote electronically on matters of principle, because that is the only way to know the real opinion of all those involved.
Enquiries
We are ready to answer any questions from our shareholders. Ask us anything.
Personal visits
Any of our shareholders can, by prior arrangement, visit the company and see for themselves the development and state of the company.
Telephone connection, electronic conferences
We have set up a telephone information line for all shareholders to better cooperate with each other.
If necessary, we will organize an electronic conference with interested parties.
Refusal of information
Non-disclosure of information to our shareholders will only be possible with justification, which will be possible in particular if this would violate any law (for example, the Data Protection Act) or if the information provided could be misused, for example, in a competitive struggle.
Principles towards employees
Employees are important to the company and so they need to be motivated. They must be motivated to make a profit and so they must have a share of the profits. Employees will be entitled to 10% of the profits as anextra bonus. We need to defend ourselves so that we don’t get into a wage spiral… where wages will be pushed up regardless of results, but we also need to motivate them to do their best.
The salary of employees in various positions will be approved by the Executive Director and the Chairman of the Board. Due to the sensitivity of the data (data protection and competition context), it is not possible to communicate any values individually or to aggregate any table. Thank you for your understanding.
In any case, we strive to employ quality workers, but at reasonable wages, who are interested and willing to work for the company. We take advantage of the fact that we have a pleasant team, a pleasant working environment, we work with modern technologies and at the same time we operate in the south of Bohemia, where wages are lower than in other regions of the Czech Republic. Workers’ wages are in line with the market situation and will not be substantially or sharply increased or changed. The above incentive programme will serve as the main motivation.
Principles vis-à-vis management and corporate bodies
As employees, as well as management and the company’s bodies, are important to the running of the company, the company is committed to paying the following incentive awards:
- 5% for the Managing Director
- 4.5% for the Board of Directors, with the Chairman (as an active member) receiving 4% and each member receiving 0.25%
- 3% for the Supervisory Board, with the Chairman (as an active member) receiving 2% and each member receiving 0.5%
- 2% for the Chief Economic Officer when the company employs more accountants
Remuneration is intended to serve as an incentive for all those involved, while also taking into account any risks associated with the performance of the function.
Management salary:
- the Executive Director will have a salary of twice the average wage in the Czech Republic until the end of 2012, from 2013 the salary will be three times the average wage in the Czech Republic
- the chairman of the board of directors, who is also the commercial director, will have a salary of twice the average wage in the Czech Republic until the end of 2012, from 2013 the salary will be three times the average wage in the Czech Republic
Management salaries reflect the experience, knowledge, skills and exceptional work commitment of the above employees. Wages and incentive pay are not at all above average for similar positions, but rather the opposite. Management positions are not only time-consuming, but especially mentally demanding. If the company grows in each month at a rate (turnover growth) higher than 25% per month (month-on-month comparison) and while maintaining profitability (for example, by not investing in advertising to “artificially” generate growth), the CEO and the Chairman of the Board are entitled to a pay increase in a particular calendar month by one times the average monthly wage in the Czech Republic.
In the second half of 2012, both employees will be provided with a service vehicle of the appropriate category (up to the rental price or a monthly instalment of one times the average monthly wage in the Czech Republic).
No one must begrudge any of this. As important as the employees are, so are the above mentioned employees. Now, one of the positions (Chairman of the Board) is filled by the founder of the company and so far the only shareholder who waives his incentive remuneration in order to avoid any speculation that he has agreed on a similar remuneration for himself at the expense of the dividend of other shareholders. This remuneration is therefore set for a situation where a completely different person will be appointed as Chairman of the Board in the future, which cannot be ruled out
Principles of company development
If necessary, part of the profits will be retained in the company for the development of other activities. The Management Board proposes the ratio to the Supervisory Board and the Supervisory Board approves or modifies the proposal and then has it approved by the General Meeting or shareholders via an online vote on the company’s website.
Principles of social responsibility
Up to 5% per year can be written off against the tax base for charitable or socially beneficial causes through donation (or other similar) agreements. The Company will use up to the 5% permitted by law to support charitable projects that the Board of Directors decides to support, based on its own discretion or on the recommendation of a shareholder. Shareholders will be informed about the support of any of the projects via the company’s website. All shareholders will vote electronically on whether to support and select the correct project and amount of support.
In the event that the above 5% exceeds 100,000 in one calendar year, the Board of Directors is authorized to establish a foundation on behalf of the company, to which, in accordance with tax laws, the said contribution will be sent and subsequently redistributed according to the decision of the management of the foundation.
SMS & E-mail info
If you would like to be informed about the exact time when the order process will start, we also offer the option of sending us your phone number or email (or preferably both) and we will send a message that the process will start in so many hours. We estimate that we will send out a notification a few hours before the launch. If you would like a similar message, please contact us via the contact form. Please include a phone number for SMS, email and, if applicable, the expected number of shares to be purchased. We can also track the development of interest accordingly. We don’t know ourselves what will happen.