overship huawei

Ownership Edit
Officially, Huawei is an employee-owned company, a fact the company emphasizes to distance itself from allegations of government control.[5] What “employee-owned” means in practice at Huawei, however, is quite complex—so much so that according to the Chinese media company Caixin, “even longtime employees admit the [employee shareholding] system is nearly impossible to understand.”[58]

Ren retains a direct 1.42 percent share of the company. The remainder of the shares is held by “a trade union committee tied to the affiliate Shenzhen Huawei Investment Holding Co.”[59] This body represents Huawei’s employee shareholders. About 64 percent of Huawei staff participate in this scheme (approximately 61,000 Chinese employees; the 50,000-plus foreign employees are not eligible[60]), and hold what the company calls “virtual restricted shares.” These shares are nontradable and are allocated to reward performance.[61] When employees leave Huawei, their shares revert to the company, which compensates them for their holding.[62] Although employee shareholders receive dividends, it is reported that they have no information on their holding.[59]

Employees' shares do not entitle them to any voice in management decisions.[citation needed] Richard McGregor, author of The Party: The Secret World of China's Communist Rulers, claimed that the majority of shares are likely owned by Ren Zhengfei and Ren's managers, though the company states Ren directly owns less than 1.5%.