Huawei Company Equity Incentive Research

Huawei is a large comprehensive communication equipment manufacturingenterprises, established in1987, the company encountered a series of dilemma anddifficulties.At the early stage of the development of financing difficulties, for example,in2003, SARS period export is blocked, backbone staff turnover, the2008globalfinancial crisis and economic recession, falling global demand, employees share alarge number of redemption and communications industry reshuffle after2012,2013domestic Banks to stop lending for employees, etc.During this period somewell-known large foreign communications companies (such as: Siemens, nortel,MOTOROLA, etc.) are stepping out of the historical stage, Ericsson, alcatel, nokiaSiemens and alcatel-lucent international giants such as the overall market share alldifferent degree of atrophy, but the company has great leap forward, sales grow from1987in100to more than1987yuan in2013to more than2200one hundred millionyuan, have full beyond Ericsson become number one in global sales ofcommunications company, employees have also been developed from originaldomestic dozens of people to now tens of people around the world, this had to let usponder the reasons behind the huawei company’s success.This paper argues that thecompany’s equity incentive system is the most important reason of its success, hasplayed a pivotal role in the development of different period, has its unique content andform, this article will to China for the company’s equity incentive system for research.Firstly,This article from the Angle of equity incentive system and companyperformance relationship of equity incentive system of the related research at homeand abroad, and expounds the implementation of equity incentive theory and mainmode;Secondly, combining with different background and development of huaweicompany equity incentive system, summarizes the main characteristics of huaweicompany equity incentive system, and from the perspective of the theory andimplementation of incentive system model, analyzes the internal reason for thesuccess of huawei company equity incentive system and its applicability; Finally,huawei and zte company equity incentive system has carried on the contrast analysis,and combined with the panel data of listed companies, using T test method to provethe equity incentive system performance has positive correlation with the company.The main features of huawei company equity incentive system, andimplementation mode, the company implemented a high strength and breadth ofequity incentive system, diluted the proportion of large shareholders, in saturatedrights at the same time, realize the fairness and efficiency of the distribution, and tiethe equity incentive and the company’s economic benefit, and greatly stimulated thestaff’s work enthusiasm.Hope the company equity incentive system andimplementation mode to the characteristics of other enterprises an effective incentivesystem of reference.