More Or Less Ren Zhengfei

What kind of company is HUAWEI, and who is the stockholder? How much is the legendary Ren Zhengfei? Recently, HUAWEI officially announced its audited 2009 annual report, which is the first public company's shareholding structure in HUAWEI's 22 year history.

The answer is surprising: HUAWEI is a 100% private employee holding company, while Ren Zhengfei only owns 1.42%.

Unlisted, private enterprises, founders - Ren Zhengfei, who meets these three conditions at the same time, has a low share of shares.

I believe there must be a full causal relationship between HUAWEI's performance and position today and Ren Zhengfei's low shareholding.

In 2009, HUAWEI's global sales revenue was 149 billion 100 million yuan (US $21 billion 800 million), an increase of 19% over the same period last year.

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The annual report shows that the shareholders of HUAWEI are jointly constituted by Shenzhen HUAWEI Klc Holdings Ltd trade union committee and Ren Zhengfei, with a shareholding ratio of 98.58%, without any legendary third party shareholders.

The number of employees in HUAWEI is 61457, which is made up of staff members, accounting for 64.7% of the total number of HUAWEI employees in 95 thousand.

The high proportion of employee stock ownership is rare.

Will Ren Zhengfei's personal holdings so low affect him?

In fact, Ren Zhengfei's insignificant personal shareholding will not only affect his authority and control, but on the contrary, the initiative of employees and competitiveness of the company will be even higher.

Because Ren Zhengfei's authority is not achieved by controlling employees, but arousing the employees' willingness and dedication.

Statistics show that HUAWEI employees receive a dividend of up to 0.7 yuan a year, with a return on investment of 70%, with a dividend of 0.9 yuan, reaching 90%.

After 2001, the profit of employees from equity is no longer a dividend but a net asset appreciation.

Therefore, HUAWEI's cadres and employees are not working for the boss, but "work for themselves", which is not the simple thing as Ren Zhengfei, the founder of private enterprise.

According to the general rule, the process of starting a business is "subtraction", which includes the gradual dilution and decrease of Founder shares.

This process is actually the process of "gathering money and gathering people", and it is also the process that the founders continue to get other bonus points.

According to HUAWEI's 2009 company owner's equity of 43 billion 316 million yuan, Ren Zhengfei's 1.42% share corresponds to a personal figure of about 615 million yuan.

This figure is far from the rich list, but it is closer and closer to Ren Zhengfei's dream of "three points of HUAWEI in the world communications industry".

Ren Zhengfei's father is a native of Pujiang, Zhejiang, so we have always regarded it as a Zhejiang businessman.

Ren Zhengfei's disclosure of his personal information has brought new shocks and inspiration to Zhejiang merchants who are at the critical juncture of pformation and upgrading.