On February 6, Xinhua News Agency reported that Huawei will issue dividends in 2021, which is expected to be 1.58 yuan per share.
According to the 2020 annual report, Huawei's total share capital is about 34 billion shares, according to which Huawei will pay dividends to employees more than 50 billion yuan.
01 "Dividends are not high, but spring will come"
According to public information, Huawei's dividends in previous years:
In 2010, the stock price was 5.42 yuan / share, with a dividend of 2.98 yuan per share; in 2011, the stock price was 5.42 yuan / share, the dividend per share was 1.46 yuan; in 2012, the stock price was 5.42 yuan / share, the dividend per share was 1.41 yuan; in 2013, the stock price was 5.42 yuan / share, and the dividend per share was 1.47 yuan; in 2014, the stock price was 5.66 yuan / share, and the dividend per share was 1.90 yuan;
In 2015, the stock price was 5.90 yuan per share, and the dividend per share was 1.95 yuan;
In 2016, the stock price was 6.81 yuan per share, and the dividend per share was 1.53 yuan;
In 2017, the stock price was 7.85 yuan per share, and the dividend per share was 1.02 yuan;
In 2018, the stock price was 7.85 yuan per share, and the dividend per share was 1.05 yuan;
In 2019, the stock price was 7.85 yuan per share, and the dividend per share was 2.11 yuan;
In 2020, the stock price is 7.85 yuan / share, with a dividend of 1.86 yuan per share; in 2021, the stock price is 7.85 yuan / share, with a dividend of 1.86 yuan per share.
In the Huawei Intranet Voice community, some employees said that although the dividend of 1.58 yuan this year is not high, "we firmly believe that spring will come."
In fact, even the lowest 1.05 yuan in 2018 has a yield of more than 10%, more than most wealth management products on the market. In 2021, Huawei's revenue fell by 30%, and Guo Ping, Huawei's rotating chairman, said in his 2022 New Year's speech that "surviving and surviving with quality" is still Huawei's current goal.
In this situation, it is not easy to insist on paying dividends to employees.
The number of participants in Huawei's employee stock ownership plan is 120,000, which will be calculated to receive more than 400,000 yuan per capita.
02Who can get dividends?
It is understood that only after two years of employment, employees with outstanding performance are eligible for allotment.
Of course, those old employees who hold stocks will pull up the average, and most of Huawei's new employees can only secretly envy.
Huawei's shares are not available to anyone, including Huawei's own employees.
Every year, Huawei employees who perform well are called to the office by their supervisors, and these employees, known as "strivers," are given a contract that tells them how many shares of the company they can subscribe for.
However, this contract cannot be taken out of the office, and after signing, it must be returned to the company for safekeeping, there is no copy, and there will be no shareholding certificate, but employees can check their shareholding quantity through the internal system account.
In the past two years, Huawei has been suppressed and many people have left.
In order to retain talent, at the end of 2019, it introduced a supplementary rule that ordinary employees can also buy shares in the company, internally known as "ESOP1".
"Employees who have been employed for 5 years can buy ESOP1 and participate in dividends every year, the amount is relatively small, and some can only take more than 20,000."
There is a difference between ESOP and ESOP1, the former with a minimum allocation of 40,000-50,000 shares, and the latter generally with 10,000-20,000 shares.
Jiangxi Sheng, secretary of Huawei's board of directors, has said that Huawei's shareholding by employees will help maintain the independence of Huawei's decision-making;
Since every penny of Huawei's capital comes from employees, these employees will not allow external influences to harm the interests of employees and the company's long-term development.
But holding employees is not without risk. The development of the company is tied to a certain extent with the income of employees, and employees who participate in the investment can participate in the profit distribution every year;
If the company loses money, the value of the stock will also decrease, and the shareholding employees will also bear the corresponding impairment risk.
03How to divide the money?
Regarding the "penny" for employees, Ren Zhengfei has always been extremely "generous":
"The money is given right, not only talents become talents." "Talk less about feelings and give more money, talk about money is the best respect for employees." "I don't understand finance, I don't understand technology, I don't understand management, I only rely on the benefit-sharing mechanism to glue 190,000 people together."
It can be said that penny is a management philosophy.
At Huawei, the management philosophy of penny sharing is "access to sharing system".
1) Motivate value creation and tilt towards strivers
The prize money comes from projects that create value for customers, including financial indicators such as profits and sales revenue, as well as indicators of customers, internal operations and learning growth. The results of the assessment are linked to the bonus package, and the employees know exactly what they are fighting for and strive for.
2) Balance the bonus package and stocks
Ren Zhengfei said: "The benchmarking analysis of salary incentives should improve rationality, and it is necessary to manage the distribution ratio of the puller and the car rider, so that the puller takes more than the car rider, and the puller takes more when pulling the car than when he does not pull the car." In this way, the value distribution concept of "getting to share" drives the long-term healthy development of the company.
3) Oppose year-end awards and emphasize process awards
Ren Zhengfei opposed the year-end award system, believing that the year-end award had lagged behind, and put more emphasis on the process award and the timely award.
For example, the process award that should have a 50% range is issued before the end of the year, and if it is not issued, it will be withdrawn at the end of the year. In this way, various departments are forced to issue project awards, process awards, and timely awards.
4) "Money-sharing power" decentralizes Huawei to delegate all the bonus package amounts to front-line leaders, so that they have full power.
"The salary package is sent down, and the following dare not increase the salary; the stock package is sent down, and the following dare not evaluate; and then the bonus package is sent down, you dare not evaluate." You don't dare to move, you don't dare to move is not my problem. Little nine-nine and big nine-nine are all given to you, and you have to make good use of your power."
Under this mechanism, the total amount of the bonus package is clear, managers and the vast majority of employees will tend to "less people more money", take the initiative to take on more responsibilities, create more value; in the long run, the per capita efficiency will be higher and higher, the higher the personal income, thus attracting more excellent people to join, thus establishing a virtuous circle of human resources.