Didi Handed Executives Shares Pre-IPO

The video discusses unexpected awards given to executives and board members, totaling $3 billion, which have surprised industry observers. These awards, buried in regulatory filings, add to the uncertainty surrounding DD. The company is controlled by its co-founders, raising concerns of self-dealing. Unlike typical IPO practices, these grants were stock options with a near-zero strike price and no vesting period, making them essentially free shares. This practice is uncommon in the US but has been seen in China, contributing to investor discomfort.

What was the total value of the awards given to DD's executives and board members?

• $4 billion

• $2 billion

• $3 billion

• $1 billion

What is a potential concern for US investors regarding DD's control structure?

• Potential self-dealing

• Lack of innovation

• Low market share

• High employee turnover

How do DD's stock grants differ from typical US IPO practices?

• They have a high strike price

• They have a long vesting period

• They have a near-zero strike price and no vesting period

• They are only given to junior employees

In which country have similar stock grants been observed?

• Brazil

• China

• India

• Germany

What is the primary reason for investor discomfort with DD's stock grants?

• The grants were only for board members

• The grants were too small

• The grants were given to all employees

• The grants were free shares with no vesting period