As we approach the Chinese Spring Festival, Huawei has issued its end of year bonus. Recently, the company issued the “2017 Limited Forecast Dividend Distribution”. In 2017, the estimated earnings per share for the virtual limited shares of the trade union was approximately RMB2.83 and the cash dividend per share is RMB1.02/share. It is well-known that Huawei pays its internal staff relatively well and its compensation comes in form of wages, bonuses, and dividends. Huawei’s net profit in 2016 was 37.0 billion Yuan and 1.53 Yuan per share dividend. Judging from the amount of this forecast, there is a decline compared with last year. At present, Huawei did not release detailed operating results for 2017 but it disclosed that it expects to generate approximately RMB600 billion in sales revenue in 2017.
It is worth mentioning that not all of Huawei’s employees are eligible to get the dividend. Although Huawei did not expressly state who is qualified, employees with share distribution usually need to have a grade of 15 or above, and the performance assessment of the year should reach A and B+. A new graduate student who works as a technical engineer in Huawei usually starts with a grade of 13 or 14. After working for about three years having 50,000 to 100,000 shares, his after-tax dividend could be up to 200,000 yuan.
And this stock does not have to go through the tedious approval process of the securities industry supervision and management departments, but they can enjoy dividends and other benefits. High dividends and bonuses are one of the most important ways for Huawei to attract talented people. It not only inspires new employees but also helps retain management personnel. The higher the rank, the more the revenue. Huawei’s 20 senior management staff has about 1 million virtual shares each. In accordance with this year’s dividend ratio, 100 million shares can generate 2.83 million Yuan of dividends (1.02 million Yuan of cash + 1.81 million Yuan worth of virtual stocks).