On April 28, Huawei disclosed its 2021 annual report, achieving operating income of 636.8 billion yuan and net profit of 75.9% year-on-year to 113.7 billion yuan.
(Image from Huawei's 2021 annual report press conference)
Huawei has always insisted on managing a reasonable distribution structure between labor income and capital income, and the distribution of value is inclined to the laborers.
As can be seen in the annual report, Huawei paid a total of 164.5 billion yuan in compensation to employees.
(Image from Huawei's 2021 annual report)
On April 2, Huawei Investment Holding Co., Ltd. announced on the website of the Shanghai Clearing House that it intends to distribute dividends of about 61.4 billion yuan to shareholders. The dividend is 61.4 billion yuan, which also means that Huawei's dividend ratio is as high as 54%.
Huawei said in the announcement that the above-mentioned dividend distribution is the company's normal profit distribution, which has no adverse impact on the company's production and operation, financial situation and solvency.
According to Huawei's 2021 annual report, Huawei Investment Holding Co., Ltd. is a private enterprise that is 100% owned by employees, and the shareholders are the Trade Union Committee of Huawei Investment Holding Co., Ltd. and Ren Zhengfei.
The Company implements an employee stock ownership plan through a trade union, and the number of participants in the employee stock ownership plan is 131507 (as of December 31, 2021), and the participants are the company's active employees or retired retainers.
The dividend is about 61.4 billion yuan, which means that the average shareholding employee can share 466,900 yuan. In addition, Huawei's employee compensation package is about 164.5 billion yuan, which means that the average salary of employees is about 800,000 yuan.
Article 16 We believe that labor, knowledge, entrepreneurs and capital create all the value of the company.
Article 17 We use the form of transformation into capital to reflect and repay the cumulative contribution of labor, knowledge and entrepreneurs' management and risks; we use the equity arrangement to form the backbone of the company and maintain effective control over the company, so that the company can grow sustainably. The capitalization of knowledge and the dynamic property rights system that adapts to technological and social changes are the directions we are constantly exploring. We have an employee stock ownership system. On the one hand, Puhui recognizes Huawei's exemplary employees and forms a community of interests and destiny between the company and employees. On the other hand, the most responsible and talented people will continue to be brought into the backbone of the company.
The Huawei Basic Law clarifies Huawei's value creation body and intellectual capital
When we envy Huawei's high dividends and high salaries, we need to see Huawei's concept and method of value distribution. "Customer-centric, strivers-oriented" is the core corporate culture of Huawei.
First, the principle of value distribution
Huawei's basic principles of value distribution are efficiency first, fairness, and sustainable development.
1. Distribution according to work: based on ability, responsibility, contribution and work attitude.
Distribution according to work should fully open up the gap, and the distribution curve should be continuous and there should be no inflection point.
2. Equity allocation: based on sustainable contribution, outstanding talent, morality and risks taken.
Equity distribution should be inclined to the core layer and the backbone layer, and the equity structure should be dynamically rational.
The proportion of distribution according to work and distribution according to capital should be appropriate, and the increase or decrease of the number of distributions and the proportion of distribution should be based on the principle of sustainable development of the company.
Second, the method of value distribution
Huawei's value distribution method is the "acquisition and sharing system", which strongly correlates the distribution of employees with the value created, encourages more work and more gains, and opens up the gap.
Acquisition and sharing system: The material return of any organization and individual comes from the value and performance it creates, the combat department obtains benefits according to the business results, and the back-end support department shares the benefits by providing services to the combat department.
It is precisely because Huawei has introduced the acquisition and sharing system, through the rational distribution of value, stimulate the vitality of organizations and individuals, and lead all employees to create value.