The Pinduoduo Partnership was established to ensure the sustainability and governance of Pinduoduo and better align the company with the interests of the shareholders.
The partnership will act as the cultural guardian to ensure Pinduoduo’s vision, mission and value is carried through successive management. It will assist the board of directors to select executive directors and chief executive officer, who should share the same core value of “本分” (“Benfen”) that Pinduoduo holds dear.
Pinduoduo Partnership will identify talented individuals who exemplify Pinduoduo’s core value and admit them as partners. Partners will be elected annually, and admission of new partners requires the approval of at least 75% of all the partners.
Each partner will be carefully selected with a focus on leadership and cultural traits in addition to ability.
To be elected a partner, the candidate must meet the following quality standards:
• a high standard of personal character and integrity;
• continued service as a director, officer, or employee with our company for no less
than five years;
• a consistent commitment to our company’s mission, vision, and values; and
• a track record of contribution to our business.
Additionally, to align the interests of partners with the interests of shareholders, a partner may be required to maintain a meaningful level of equity interests in Pinduoduo during his or her tenure as a partner.
All partners are required to retire upon reaching the age of sixty or upon termination of their employment. Any partner may be removed upon the affirmative vote of a majority of all partners.
Pinduoduo Partnership serves as the talent pool and will nominate candidates of executive director and chief executive officer to the board of directors. The nomination requires the approval by a majority of all the partners.
Partnership-nominated directors and chief executive officer will be familiar with the company’s business and senior leaders through the partner development process, which ensures consistent execution of Pinduoduo’s vision, mission and value and smooth leadership succession.
Another important function of Pinduoduo Partnership is to balance the company’s long-term vision and benefits and the short- to midterm interests of the shareholders. Pinduoduo is dedicated to investing in the future and will always focus on the long term. Sometimes, growing the company’s long-term intrinsic value may affect the short- to mid-term interests of the shareholders.
In an endeavor to balance both sides, Colin Huang, Pinduoduo’s co-founder and chairman, transferred 370,772,220 ordinary shares to Pinduoduo Partnership in June 2020, representing approximately 7.74% of total shares of the company. The partnership will use part of such assets to fund fundamental science research and social responsibility activities related to Pinduoduo without affecting the short- to mid- term interests of the shareholders.