Per capita annual salary of 280,000 yuan: interpretation of Huawei "incentive Code"

Sunyan to Huawei's year-end bonus, in the forum to bask in wages, show dividends, but also become part of the Huawei employees entertainment projects.　　Huawei's 2010 Annual report showed that the company spent 30.6 billion yuan last year on employee costs, with an average of nearly 280,000 yuan for its employees, calculated by Huawei's 110,000 employees. "It is estimated that 50% of Huawei's employees do not reach the level of 280,000 yuan a yearly salary, and the recent internal forum of Huawei has been abuzz over the matter."　　"An in-house employee of Huawei yesterday told the first financial daily reporter. From the annual report, this 30.6 billion yuan does not include share dividends.　　According to our correspondent calculates, Huawei last year's dividend should be 11.8 billion yuan. Large-scale employee ownership is considered to be a corporate governance model for Huawei's success, in fact, in addition to employee incentives, this is Huawei's internal fund-raising behavior.　　However, the nature of Huawei's employee ownership, whether it can continue to share rights to employees, which is a lot of analysts puzzled. The hierarchy of pay system "our first half of the overall wage level has indeed been raised by 10%." "An in-house employee of the Huawei Production department says that the rate of pay per employee is directly linked to performance over the past year."　　But if the employee's performance review is less than 5% last year, it loses the chance to get a raise.　　Recently, Huawei publicly disclosed to the media, the first half of this year, Huawei's more than 40,000 middle-level staff wages have risen 11.4%, accounting for 36% of the total number of employees, the second half will continue to adjust the salary of senior staff, the expected wage increase 5%~10%. The internal staff pointed out that the company each year according to corporate performance polling staff salaries, the adjustment is generally 10%, the pay is also related to the continued rise in the domestic CPI index.　　However, this year's employee rights issue has not yet been implemented, the number of shares between thousands of shares to tens of thousands of shares, but also with the performance of the last year directly linked. "In fact, the salary of Huawei employees with their own system and what level directly linked to a very distinct level."　　said the internal staff. The internal staff disclosed that Huawei employees in accordance with production, research and development, marketing and customer service Division Four systems, in which research and development and marketing system salary level significantly higher than the production and customer service system.　　Just graduated from the undergraduate entrance to Huawei's starting salary standard of 6000 yuan/month or so, graduate students for 8000 yuan/month or so, this difference with the length of work longer and smaller, the main competition is the work performance and ability.　　Tianya Forum Huawei Area widely reproduced in the "Huawei internal wages and treatment" of the post shows that Huawei staff salary level from 13 to 22 levels, a total of 10 levels. The above internal staff said that the content of the post is basically true, generally in the market sales and research and development department after 5 years, the monthly salary plus year-end bonus and stock dividends, usually in 200,000 yuan.　　But working in Huawei is relatively hard, and employees often work spontaneously to get their jobs done, but without overtime, 4% of their employees leave each year. A Huawei cell phone developer has also confirmed that a5 years of work-like research and development staff annual salary of about 200,000 yuan.　　Is virtual stock a real stake? A middle tier of Huawei Marketing said that 5 years of work, 200,000 yuan annual salary in the Huawei Research and development and marketing sector is a medium level, and Huawei employees pay more than ZTE (000063.SZ,00763.HK) and other competitors almost 20%.　　More importantly, Huawei has 60% employees who hold shares in the company, benefiting from the growth of its earnings.　　Earnings show that Huawei has 110,000 employees, of whom 65,000 are in stock.　　ZTE insiders say ZTE is higher on bonuses than Huawei in terms of higher wages than ZTE, but the person is reluctant to disclose the level and structure of annual salaries for ZTE employees.　　But in-house employees from Huawei's production department say the starting salary standard was impressive when they first entered Huawei, but after a period of work, the length of work and the amount of toil they earned were not proportional to the salary they received, resulting in a decline in the superiority of Huawei's employees over previous years.　　Third party certification authority, Norwegian classification Society registered director Auditor Wu yesterday to this reporter said, the growth of the company's performance is not directly linked to the increase in employee's salary, but represents the trend of the increase of employee's salary, and the way in which Huawei's employees hold shares will directly link the interests of the company with the interests of employees. Perhaps that is why ZTE is tightening up on equity incentives. June 14, ZTE's first major shareholder, Shenzhen zhongxing New communications equipment company to reduce the 48.495 million shares, set now 1.255 billion yuan. The move was speculated by the industry that ZTE's employees were motivated by a roundabout approach.　　ZTE has not made any statement on the reduction, nor is it willing to disclose the reasons for the reduction. However, as a listed company, ZTE has to achieve a sustained employee equity incentive there is no small problem-to stimulate the equity from the additional or large shareholder transfer?　　Generally speaking, it is more common for large shareholders to reduce their holdings as incentive pools. So Huawei almost every year to the workers rights allotment, where does the stock come from? In fact, since 2001, Huawei has introduced an option reform called "Virtual restricted stock".　　Virtual stock refers to a fictitious stock which the company gives incentive object, which can enjoy a certain amount of dividend right and stock price appreciation right, but it has no ownership, no voting right, cannot transfer and sell, and automatically expires when leaving the enterprise. That said, if Huawei were to match a 10,000 share of a "virtual restricted unit" to an employee, it might not indicate that Huawei needed to issue 10,000 new shares to subscribe. In addition, whether the "virtual restricted stock" corresponds to the same number of Huawei shares, which is unknown. Previous lawyers have argued that Huawei's employee-ownership plan is not standard, but more like an internal reward system.