With the development of China's economy, competition among enterprises is increasingly fierce. Talents are the core of enterprises, and improving corporate performance is the fundamental purpose of enterprises. How to attract and retain talents has gradually become one of the key factors for the long-term development of an enterprise. Equity incentive is a kind of management innovation that grants corresponding equity to employees. Through this kind of incentive, employees and enterprises will establish a connection of sharing risks and benefits. While attracting and retaining talents, the company can improve its performance to achieve long-term and efficient development. For a technology company like huawei, human resources are particularly important. Huawei's equity incentive mechanism is not fixed, but flexible to adapt to the enterprise's development needs in different periods, so that the enterprise can get out of difficulties. By studying the effectiveness of equity incentive for huawei, this paper hopes to provide reference for other enterprises to implement equity incentive in the future.
This paper starts from five aspects. Firstly, it introduces the background, significance, research ideas, methods and framework of the topic, and reviews domestic and foreign research literature. Secondly, it introduces the concept and theory of equity incentive. Followed by detailed analysis of huawei's equity incentive, the paper introduced the development of company and equity incentive, summarizes its characteristics, financial indicators and non-financial indicators combined with the analysis of the existing TUP incentive system, before and after the change, found that equity incentive is not only to a certain extent, promoted the huawei financial index, the number of patents and the improvement of market share, also for huawei attracts more talent. By analyzing the reasons of huawei's successful implementation, enlightenment is obtained and Suggestions are put forward.
