The Research On Employee Stock Ownership Plan Of HUAWEI Company

With the development of global economy,the market competition becomes more and more furious,human capital as the scarcest capital,its importance is increasingly prominent,so how to realize the long-term incentive to the enterprise core talented person has gradually become the research emphasis of today's human resource management.As a long-term incentive mechanism,ESOP has formed a benefit community of employees and enterprises by letting employees hold company stock,has achieved an effective incentive to employees,so be used by more and more enterprises in China.ESOP originated in America in the 1950 s,has formed a standard mode after years of development,be applied by most enterprise in the United States and has achieved remarkable results.However,the research on ESOP in China is later,relevant laws and regulations are not sound,so the ESOP often encountered problems in the process,such as the operation is not normal,the system is not reasonable and so on,the overall effect in the practical application does not meet expectations.The paper found that the foreign theoretical research on the ESOP is relatively rich and comprehensive after analyzing the research actuality of ESOP,but because of the difference in economic system and legal environment between China and western countries,the Chinese company cannot copy the ESOP in the western countries;Most scholars in China study ESOP in one aspect by the method of empirical,however,few scholars study ESOP according to the specific case,so the existing research is hard to provide guidance for Chinese enterprise to implement ESOP.Based on the above situation,the paper chooses Huawei Company as the research object,to conduct a comprehensive analysis on its ESOP.As a non-listed private high-tech company in China,Huawei implement ESOP in the earlier times,and has developed into global 500 now from a small firm in 1987,it is representative for Huawei to apply ESOP successfully,so the successful experience about Huawei's ESOP is worth other Chinese firms to learn.On the basis of the related theory of ESOP and the method of case study,the paper elaborated the whole evolution process of Huawei's ESOP comprehensively,it has summarized the main features and the effect,and analyze the problems that exposed in the later operation emphasically,and then come up with some reasonable proposal,in the end,draw some revelation from Huawei's ESOP,aimed to present a complete case study for the readers.The significance of this paper is to provide real case reference for other Chinese enterprise to implement ESOP and enrich Chinese theoretical research on the ESOP through the specific study on Huawei's ESOP.