Huawei insiders confirmed that the company is still in a difficult period and will still come up with more than 50 billion dividends

Based on strivers, Huawei is serious!

On February 6, a number of Huawei insiders told the Shanghai Securities Daily that in 2021, although Huawei is still in a difficult period, the company will still take out more than 50 billion yuan to pay dividends to the "strivers".

Not only Huawei, but also equity incentives, as an important means for enterprises to attract and retain talents, are being adopted by more and more listed companies.

According to the 2021 annual statistics and analysis report on the practice of equity incentives of A-share listed companies released by Rongzheng Consulting, in 2021, 808 A-share listed companies announced 826 equity incentive plans, an increase of 82.74% year-on-year. The report predicts that equity incentives in the A-share market will exceed 1,000 cases in 2022.

Huawei Haopai has more than 50 billion yuan in red envelopes

In 2021, Huawei "survived".

According to Huawei's previous forecast, it will achieve sales revenue of about 634 billion yuan in 2021, which will be 29% lower than in 2020.

Despite this, after the reporter's verification, Huawei's 2021 annual stock dividend plan has been released: although it is in a difficult period, Huawei will continue to implement stock dividends, and it is expected to be 1.58 yuan per share.

According to Huawei's official website, Huawei Investment Holding Co., Ltd. is a private enterprise that is 100% owned by employees. Huawei implements an employee stock ownership plan through a trade union, and as of December 31, 2020, the number of participants in the employee stock ownership plan is 121269, and the participants are all employees of the company.

Huawei's internal equity plan began in 1990, and founder Ren Zhengfei held shares in the company as a natural person shareholder, and Ren Zhengfei also participated in the employee stock ownership plan. As of December 31, 2020, Ren Zhengfei's total capital contribution was equivalent to about 0.90% of the total share capital of the company.

It is understood that as of December 31, 2020, Huawei's total share capital is about 34.7575 billion shares, "the past year is a year of Huawei's large turnover of personnel, many talents have joined Huawei, there are also many people who have left Huawei, Huawei has issued a lot of shares, and also repurchased a lot of shares, overall, the total share capital should not change much." Some people close to Huawei told reporters.

According to the dividend of 1.58 yuan per share, in 2021, Huawei will pay more than 50 billion yuan to distribute red envelopes to the "strivers".

"Customer-centric, strivers-oriented" is the core corporate culture of Huawei. In terms of profit distribution, Huawei has always emphasized "tilting towards workers", huawei believes that all employees work hard and constantly create achievements, which is the main body of the company's value creation and deserves more returns.

"The purpose of our struggle is subjectively for ourselves, and objectively for the country and the people. But the unity of subjectivity and objectivity is indeed achieved through serving customers. Ren Zhengfei once said this at Huawei's internal meeting.

Chen Lifang, director and senior vice president of Huawei, mentioned in a discussion with new employees that There is a sentence within Huawei: Huawei is the world's poorest and most willing to spend money high-tech companies. Among them, "investment talents" are the most willing places for Huawei to spend money, spending more than 160 billion yuan in this regard every year, which is more than investing in product research and development.

808 A-share companies

In 2021, the equity incentive plan will be pushed

The "golden handcuffs" of the employee stock ownership plan have attracted and retained a large number of talents for Huawei, and is one of the main driving forces for Huawei's rapid growth into a global leader. At present, Huawei employs about 197,000 people, operates in more than 170 countries and regions, and serves more than 3 billion people worldwide.

In recent years, more and more technology-based, R&D, and service-oriented listed companies have also learned from Huawei, and actively used equity incentives and employee stock ownership plans to further release employee vitality.

According to the 2021 A-share listed company equity incentive practice statistics and analysis report released by Rongzheng Consulting, in 2021, 808 A-share listed companies announced a total of 826 equity incentive plans, an increase of 82.74% over the 452 cases in 2020. The number of equity incentives has reached the highest level in the calendar year. Among them, there were 436 incentive plans in the first phase, an increase of 80.17% over the 242 cases in 2020, and 390 multi-period incentive plans, an increase of 85.71% over the 210 cases in 2020.

In addition, the number of employee stock ownership plan announcements has reached a new high. The report shows that in 2021, the number of employee shareholdings in the market hit a new high since 2015, reaching 225, an increase of 36.36% over 2020.

The report pointed out that the announcement of multi-period equity incentive plans and employee stock ownership plans has increased significantly, which to a certain extent shows that equity incentives in the A-share market have entered the era of "normalization" and have become an effective means for listed companies to improve corporate governance and improve governance capabilities.

From the perspective of implementation effect, equity incentives have effectively tapped the development potential of listed companies, and the effect of incentive "empowerment" has emerged.

Taking the Shenzhen market as an example, in 2020, the companies that implemented equity incentives in the Shenzhen market, excluding individual companies, the operating income in the first three quarters of 2020 and 2021 increased by 12.17% and 38.75% respectively year-on-year, and the net profit increased by 44.79% and 26.75% respectively year-on-year, and the revenue scale and profitability were higher than the average level of the Shenzhen market.

The report predicts that in 2022, the equity incentive in the A-share market will exceed 1,000 cases, and the equity incentive of state-owned enterprises is expected to exceed 100 cases, further reflecting the development trend of "common prosperity, strict supervision, standardization and normalization", and China's listed companies will also be more competitive and responsible in the establishment and improvement of medium- and long-term incentive mechanisms.

Edit: Shao Hao

Proofreader: Feng Wenjun

Photo editor: Zhao Yanyi

Producer: He Yongxin

Editor-in-charge: Zhang Xiaoguang

Guo Chenxi

Producer: Pu Hongyi

Issued: Pan Linqing