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). The structure of the ESOP is based on two important premises. Huawei’s ESOP can satisfy both human needs. The gaps between what CEOs earn and what workers do are startlingly large around the world.