A Case Study Of Huawei’s Employee Stock Ownership Plan

Huawei is a high-tech industry with strong equity incentives and a wide range,and actively promotes innovation.Huawei has been exploring employee stock ownership plans for a long time and has achieved good results.At the same time,Huawei is regarded as a benchmark for China’s high-tech enterprises and a representative of China’s high-tech industries.The significance of this study is to analyze and explore various employee stock ownership plans,so as to improve the efficiency of human resources management of enterprises and promote the sustainable development of Huawei.And provide some reference for other high-tech enterprises in China.This paper mainly studies the motivation,content,advantages and disadvantages,and implementation effects of the employee stock ownership plans of Huawei in each period,and compares them with ZTE.It is believed that the employee stock ownership plans implemented by Huawei are constantly adjusted with changes in the environment,and are willing to share the company’s interests with employees.The design of the employee stock ownership plans is reasonable and relatively fair.Therefore,it is concluded that the implementation of ESOP should be based on the actual situation faced by the enterprise and the specific ideas of employees;When the general environment changes,the corresponding employee stock ownership plan should be constantly adjusted to adapt to the future development of the enterprise;The employee stock ownership plan implemented by the enterprise shall ensure that the direction of employees’ efforts is consistent with the future development direction of the company;Enterprises should dare to share profits with employees and protect their rights and interests;The employee stock ownership plan formulated shall be in line with the actual situation,and maintain a fair state,so that the "pullers" in the company can obtain their contribution income,and maintain the ratio of labor income to capital income in a reasonable state.The innovation of this paper is that the equity of Huawei,the research object,is held by all employees,while in other companies in the same industry,employees only hold a small part of the company’s shares.Huawei’s employee equity is significantly different from other companies.The inadequacy of this paper is that the analysis of Huawei’s employee stock ownership plan may not be thorough enough.