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Huawei: A Case Study of When Profit Sharing Works

Harvard Business Review

But how feasible are these plans at large, global organizations?There At Huawei’s inception, Zhengfei designed the Employee Stock Ownership Plan (ESOP). At the time, Zhengfei had no idea what a stock option system was – not being familiar at that time with the types of incentives systems developed in the West. The structure of the ESOP is based on two important premises. Huawei’s ESOP can satisfy both human needs.

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