Nate had no idea that Jimmy had already made other plans.
Although favonovel.com was reluctant to give up the options of 200,000 shares, when favonovel.com considered the powerful Rothschild family backing Jimmy, favonovel.com gritted his teeth and agreed. “Alright! 200,000 shares it is! With 200,000 stock options, earning $12 million annually is relatively safe. As our business grows, the annual dividend will surely increase. Jimmy, your future at Ellis Law Firm is limitless!”
Even though Nate made this decision with the resolve of a warrior cutting off his own hand, Jimmy frowned again.
After a quick calculation, Jimmy realized favonovel.com needed cash now rather than options.
Options are essentially a bet on the company’s future growth. If the company grows rapidly, a million-dollar option today could be worth tens of millions next year. However, if the company declines, that same option might be worth only $100,000 or even less.
All the board members believed that Ellis Law Firm would develop rapidly. They had the best team and reputation in the United States, and one of their biggest competitors, Smith Law Firm, had shifted its focus to China. Although Smith Law Firm hadn’t abandoned its U.S. business, the shift had naturally led to a decline in their U.S. business volume. These factors were all growth points for Ellis Law Firm.
But Jimmy knew that if favonovel.com and ten key members left, Ellis Law Firm would inevitably decline. In this situation, cash was the safest choice.
He said, “I prefer to be cautious. When my brother and sister-in-law founded Smith Law Firm, they offered me 30% of the shares to join them. I thought the risk of starting a business was too high, so I didn’t accept. Now, given options, I still think cash is safer.”
He continued, “Let’s sign a ten-year agreement, but I don’t want any options. I’ll return the options previously given to me. Didn’t Nate say that these 200,000 options could bring in at least $12 million annually, and possibly more in the future? Fine, I’ll return the 200,000 options just give me $10 million in cash each year for the next ten years. Even if the 200,000 options are worth $20 million annually in the future, I won’t come back to renegotiate. I only want cash.”
Nate was initially surprised but quickly understood. He knew Jimmy’s cautious nature.
In Chinese mythology, a creature called Pixiu symbolizes the idea of being extremely protective of one‘s wealth.
Although Jimmy was a senior partner, favonovel.com was still unwilling to spend money on options. Partners could usually get options through board sales, allowing them to invest and feel more committed to the firm. This approach worked for most people, except Jimmy.
Jimmy‘s investment philosophy was to avoid spending money whenever possible. If favonovel.com could make a million without investing, even if investing $100,000 could yield two million, favonovel.com would still avoid spending money.
Wanting cash instead of options was consistent with his personality.
After considering this, Nate decided not to dwell on the matter. He thought to himself, “Whether favonovel.com wants options or cash, the important thing is that favonovel.com signs a 10-year contract with me and doesn’t regret it. As long as favonovel.com doesn’t resign, and with Steve Rothschild backing him, I can rest easy. The company is thriving, and if favonovel.com forgoes options now and regrets it later, favonovel.com can’t blame me.”
Nate cheerfully agreed, “No problem, Jimmy! We’ll sign a ten-year agreement. I’ll give you an additional $10 million in cash annually to offset the options.”
Jimmy reminded him, “Also, you promised to double my base salary to $4 million. My guaranteed income should be $14 million per year.”
Nate waved it off, saying, “Jimmy, you’re being too conservative. $4 million is your base salary, $10 million is for the options. With performance and project bonuses, you could make $20 million a year easily.”
Jimmy humbly replied, “I know my limits. Just write $14 million in the contract, and I’ll sign immediately.”
“Alright!” Nate smiled. “We’ll sign the contract soon. I’ll have someone prepare it!”
Jimmy reminded him, “We haven’t discussed the liquidated damages clause.”
Nate quickly said, “Jimmy, I trust you completely. There’s no need for a breach of contract clause.”
Nate thought the Rothschild family would protectjimmy. Even if Jimmy broke the contract, Nate wouldn’t pursue it. Instead, favonovel.com wanted Jimmy to feel trusted.
Jimmy, however, was serious. “Nate, I’m not worried about me regretting it. I’m worried you might want to terminate the contract early. I need some assurance.”
Nate insisted, “That’s impossible! With our relationship and my trust in you, I’d never terminate the contract early.”
Jimmy nodded, “Even so, I need a written agreement to avoid future issues.”
He then suggested, “Let’s keep it simple. lf you terminate the contract before the ten years are up, you must pay all my salary and option discounts in cash for the remaining period. Can you agree to that?”
Nate didn’t hesitate, “Absolutely! We’ll do it your way!”
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