The annual dividend of Huawei employees has always attracted the attention of netizens, and the dividend of Huawei's virtual restricted shares in 2022 is expected to be RMB 161 yuan shares, after the dividend, the virtual restricted shares** are expected to be 785 yuan shares, which also means that Huawei's internal stock dividend yield is 205%, which killed most of the wealth management products in seconds. If there are 100,000 shares, then the after-tax income will be more than 100,000 yuan. Huawei's employee dividends come from the employee stock ownership plan, and this article will take you to see what Huawei's employee stock ownership plan isHow does it work?
Huawei's shareholding structure is peculiar – 100% of the shares are held by employees, which means that there are no outside shareholders, and all shares are held by current employees or retired retainers. This structure, which is quite rare globally, makes the employee not only the workforce of the company, but also the owner of the company.
Huawei's employee stock ownership plan began in 1987 when the company's founder, Ren Zhengfei, raised RMB 210,000 yuan, and co-founded Huawei in Shenzhen with 5 other initial investors. As the company grows, employees gradually participate in the stock ownership plan. By 2003, Huawei had formed the same shareholding structure that it has used today, that is, the Huawei Holding Labor Union as an employee stock ownership platform. The details of the implementation of the ESOP are equally compelling. Each business year, the company determines the number of shares that each employee can purchase based on indicators such as years of service and rank. Employees can use annual bonuses to buy**, and if the bonus is not enough to cover the amount, the company will lend to the employee。This practice not only shows trust in employees, but also gives employees more motivation to improve their work performance.
The distribution of equity is not set in stone. Huawei will adjust the equity allocation plan according to the company's development and market conditions. For example, in March 2002, Huawei began to implement a plan called "virtual shareholding", which is essentially an appreciation right and a type of option. This change reflects Huawei's ability to respond quickly to market changes and continuously optimize its employee incentive mechanism.
Employee stock ownership plans dramatically increase employee sense of belonging and loyalty. As shareholders of the company, employees will naturally care more about the long-term development of the company, not just for their own short-term interests. The dividends that excellent employees receive through stock ownership often far exceed ordinary salaries and bonuses, which reduces brain drain to a certain extent.
Of course, Huawei's employee stock ownership plan has also faced challenges and criticism. Some pointed out that the complexity of the allocation and buyback mechanism of equity may lead to a lack of transparency in the internal governance structure. In addition, as Huawei's globalization process accelerates, how to integrate this unique shareholding structure with international norms is also a problem that Huawei needs to solve.
Overall, Huawei's employee stock ownership plan is a unique and complex system that not only reflects Huawei's corporate culture, but is also an important factor in its business success. Despite the controversy and challenges, it is undeniable that this program has brought tangible benefits to Huawei employees and a case study for global enterprises to Xi. As Huawei continues to expand in the global market, we have reason to believe that this ESOP will continue to contribute to the company's growth. The above is all the content of this article, if you like this article, welcome to like and collect and follow