Research On The Equity Incentive System Of Huawei From The Perspective Of Life Cycle

At present,China is in a new stage of further deepening reform and expanding opening up,with deepening the reform of the enterprise system and establishing a modern enterprise system being one of the key points of the reform.Under the socialist economic system,market competition intensifies,and high-tech enterprises face many difficulties in development and expansion.Among these issues,talent attraction is the most important.For modern enterprises,talent is the greatest driving force for production.To maintain the vitality and competitiveness of the enterprise,it is necessary to maintain the attraction of talent at all stages of the enterprise’s lifecycle,and to ensure the sustainable development of the organization by allowing talent to settle in the enterprise.Huawei uses different equity incentive measures in different life cycles to solve the crisis faced by the company and promote its effective development,which is a benchmark in the high-tech industry.Therefore,this article selects Huawei as the case study object,providing a detailed introduction to the equity incentive systems implemented by Huawei in different life cycles,and analyzing the incentive effects generated by these systems.This article mainly uses the case study method to study the equity incentive system implemented by Huawei at different stages of its lifecycle.By analyzing its incentive effects,it summarizes the reasons for Huawei’s success and the inspiration it brings to non listed companies.Firstly,starting from the theory of enterprise life cycle,by reviewing Huawei’s development process,it is divided into three life cycles and introduced the main equity incentive plans implemented by Huawei in each life cycle stage;Secondly,analyze the effects of Huawei’s equity incentive system from both financial and non-financial indicators;Once again,during the analysis process,it was pointed out that there are some potential risks in Huawei’s equity incentive system,and a summary was made on the potential risks and the reasons for Huawei’s success,so that non listed companies can avoid the same problems when learning from Huawei’s successful experience;Finally,summarize the research conclusions of this article and propose research prospects.Through the analysis of Huawei’s equity incentive process,it is found that Huawei’s equity incentive effect is very good,not only in the system itself,but also in the implementation of the enterprise’s knowledge capitalization theory,establishing employee ownership awareness,and ensuring "one hole for profit" through "one hole for profit".These concepts are worth learning and learning from by various enterprises,and tailored appropriate equity incentive plans based on their own situation.