‘Just stay simple, we can still make the grade’
In 2008, when we acquired the real estate private equity firm from Lehman Brothers, which is today’s EBA Investments, it only cost us $850,000. Last year, we sold a 51-percent stake to Jiabao Group for 1.5 billion yuan ($220 million).”
Striking a chord with the motto of China Everbright Ltd (CEL) — Making Wealth Simple — Chief Executive Officer Chen Shuang has clung to the “simplicity ” philosophy that has guided him at the company’s helm for the past decade.
Hailing from a humble family background in a village in Nantong , Jiangsu province, Chen recalls that his carefree childhood days, when he would clamber up trees wrenching eggs from b i r d s ’ n e s t s , h av e h a d a far-reaching impact on his career.
He says his tenet of leadership is to keep simple politics. He maintains a high degree of transparency in the company, and the last thing he wants to see is an employee walking into his office with a “tip-off ”.
Staff members, he says, have to be simple, happy and well-motivated.
Growing up in an impoverished environment has taught Chen how to keep striving for personal advancement and be always on the lookout for opportunities to move up the value chain.
When he began his stint as the head of CEL in 2007, he was candid that the company had the “staleness” of a typical State-owned unit. It was cozily living on revenues generated each year by Everbright Securities and Everbright Bank — money that could just keep the company afloat.
Chen introduced drastic reforms in 2011, with the sale of a 51-percent stake in Everbright Securities (Intern a t i o n a l ) t o Ev e r b r i g h t Sec urities. T he company has been aggressively looking for new opportunities to expand. Employee coinvesting was also adopted to enhance alignment of interest between employees and CEL.
Chen believes this would ultimately motivate his staff and effectively bring down investment risks.
Citing the Chinese saying “breaking the caldron to sink the boat”, he says it’s necessary to go through selfimposed hardships so as to gain the strength to move ahead.