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Huawei: A Case Study of When Profit Sharing Works

Harvard Business Review

It is the only Chinese company that receives more sales revenue from markets outside China (67%) than from inside it. isn’t one of those markets. 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.

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