Despite Huawei's difficulties, it still threw more than 50 billion yuan in red envelopes to employees

Author: Gong Jinhui

Huawei's every move can always attract the attention of all parties. No, recently, the news about Huawei's annual dividend has increased sharply.

Originally, Huawei announced the dividend data of the 2021 employee stock ownership plan at the end of January, predicting a dividend of 1.58 yuan per share. It is reported that from 2018 to 2020, Huawei's dividends per share will be 1.05 yuan, 2.11 yuan and 1.86 yuan, respectively. Huawei's dividend per share in 2021 is lower than in 2020, which is not unrelated to its own development difficulties.

Previously, Huawei's rotating chairman Guo Ping disclosed that Huawei's revenue is expected to be about 634 billion yuan in 2021, down 28.9% from 891.4 billion yuan in 2020. Huawei insiders said that in 2021, although Huawei is still in a difficult period, the company will still spend more than 50 billion yuan to pay dividends for the "strivers".

As we all know, Huawei is one of the few technology companies with 100% employee shareholding, Huawei implements an employee stock ownership plan through the trade union, which began in 1990, 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, including Huawei head Ren Zhengfei, who holds 0.9% of Huawei's shares.

As of December 31, 2020, Huawei's total share capital is about 34.7575 billion shares, although in 2021 Huawei experienced a large number of personnel flows, some people left and some people joined, but the total share capital did not change much. According to the calculation of 1.58 yuan per share dividend, Huawei will take out more than 54.8 billion yuan to distribute to all shareholding employees, which is really trench, and the strength of other people's companies.

Clear-eyed people can see that in the high-tech industry with fierce competition and frequent poaching, equity incentives have become an important means of attracting and retaining talents, and Huawei's move is intended to further stimulate the creativity of employees, enhance the sense of identity and belonging to the company, and thus create greater value for Huawei. To put it bluntly, Huawei and employees achieve each other.

Of course, dividends are not pie in the sky, unearned gain is not feasible, only strivers can share the development dividends with the company. You know, the spirit of struggle has long been written into Huawei's DNA, Huawei advocates customer-centric, strivers-oriented, long-term hard work, which is the corporate culture and values that have always been adhered to.

In other words, only Huawei employees who work hard and strive to be upstream can truly taste the joy of harvest. By the way, Huawei's full shareholding, a major benefit is that employees and the company are deeply bound, breathing together and sharing a common destiny. If the company develops well, employees get more dividends; if the company develops in general, employees receive relatively few dividends. This explains why Huawei's dividend per share in 2021 is lower than in 2020.

Although Huawei encountered no small difficulties in 2021, and the negative effects of multiple rounds of sanctions continued to ferment, it still threw more than 50 billion yuan in red envelopes to employees, which is enough to reflect its great attention to employee welfare, after all, talent is an indispensable valuable resource and core competitiveness for enterprise development. Huawei is very willing to invest in employees, which is really the conscience of the industry.

I believe that the difficulties are only temporary, in the long run, Huawei's future is bright, and its employees who have been with it and continue to struggle will be able to offer more dividends and become full winners in life. Come on Huawei!