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The structure in the ESOP is based on two critical premises. The primary tend to be the Confucian values of equality and harmony, which underlie Zhengfei’s desire to stop wealth gaps concerning employees from becoming much too large. To accomplish this, Zhengfei believes that if personnel very own the company they will be motivated to act as business people and initiate more initiatives that could help all of these to gain far more and diminish variances in wealth development significantly.
A further critical limitation is usually that Huawei is A non-public company; it’s not crystal clear how the technique they use would translate to publicly traded businesses, and Huawei at present has no designs to go public.
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Huawei thinks doing this would effectively dismantle their earnings-sharing program, harm morale by creating inequality, strain the organization to Feel limited-expression, and curtail innovation and expansion – which happen to be of superior benefit throughout the telecom sector.
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