Research On The Effectiveness Of Huawei's Stock Incentive System

Talent is the core of the company.Facing the increasingly fierce market competition,how to attract and retain talents becomes the key to the development of a company.The equity incentive system combines talent management with corporate governance,By attaching a certain amount of equity to the employees of the enterprise,it establishes the mechanism of "risk sharing and benefit sharing" between them and the enterprise,thus guiding employees to work more actively for the enterprise,while attracting and retaining the excellent talents while promoting the improvement of the business performance.The equity incentive system is a key instrument in modern management enterprises,and the combination of "man's management" and "enterprise management" is becoming more and more focused,valued,and used.Different enterprises in the implementation of the equity incentive system in the face of the situation,the way to take and concrete measures are different,the results are also different.Successful use of equity incentive system of domestic enterprises are numbered,huawei company is one of the model.Given Huawei's success in implementing the equity incentive system,a summary of Huawei's successful implementation of equity incentives can provide lessons for other companies in the implementation of equity incentives in the future.Then,combining financial indicators with non-financial indicators,the changes in relevant conditions before and after the implementation of Huawei's existing TUP equity incentive system were compared,and it was found that the equity incentive system had a significant effect in improving company performance,employee numbers,and market share.This paper takes Huawei as an example and uses a combination of case analysis and comparative analysis to study the effectiveness of its equity incentive system.First,taking the relationship between the stock incentive system and the company performance as the starting point,the research on equity incentive system at home and abroad was summarized,and the related theories and main implementation modesof the stock incentive system were introduced;Secondly,it introduced the previous equity incentive system implemented by Huawei since its establishment,and summarized the main features of the equity incentive system implemented by Huawei in different periods;Then,combining financial indicators with non-financial indicators,the changes in relevant conditions before and after the implementation of Huawei's existing TUP equity incentive system were compared,and it was found that the equity incentive system had a significant effect in improving company performance,employee numbers,and market share,By analyzing the reasons for the successful implementation of its equity incentives,the relevant experience can be used for reference;Finally,the author summarizes the full text.While affirming the success of Huawei's equity incentive system,it summarizes the deficiencies in the formulation and implementation of equity incentives,and proposes corresponding improvement suggestions for these imperfections.