Tianzheng Group Co., Ltd. is one of the largest enterprises in China industrial electrical appliance industry. In the process of optimizing its corporate governance structure, the following measures are mainly taken: first, encourage senior executives to actively participate in shares, especially to attract middle-level backbone and highly educated technical talents; The second is to control the ownership structure, ensure the relative holding of Founder Group, maintain the control right and prevent excessive equity differentiation; The third is to set up an employee stock ownership meeting with legal person status and select some directors from it; The fourth is to optimize the scale structure of the board of supervisors, and determine the scale of the board of supervisors according to the ratio of 3: 5 between the board of supervisors and the board of directors, in which the ratio of internal and external supervisors is 7: 3; Fifth, improve the supervisory power of the board of supervisors, and make it clear that the board of supervisors is only responsible to the shareholders' meeting, and has the same level as the chairman and president, and has the right to supervise the chairman and president, and requires every employee to cooperate with the board of supervisors in the examination and supervision. The board of supervisors has the right to require middle-level and above cadres to use their share capital or annual salary as collateral to ensure that their words and deeds do not harm the interests of the company, be loyal to their duties and do not engage in malpractices for personal gain. If they break the rules, they will be punished, and the fine will be deducted from the share capital or annual salary.
(2) Huawei's equity incentives, internal entrepreneurial incentives and rotation system at the decision-making level.
The specific method of equity incentive is to pay dividends at the end of the year according to the performance of employees and actively implement the employee stock ownership plan. The employee's shareholding is not a static value, which can be adjusted according to the employee's talent, contribution and work attitude, that is, to give employees an equity option incentive. Although Huawei's equity incentive has a good incentive effect on employees and management, the dispersion of equity will bring risks to the company.
In order to solve this risk, Huawei has implemented internal entrepreneurial incentives. The specific method is to separate Huawei's non-core business and after-sales service such as sales, public transportation, printing and catering services from the business structure of the head office and outsource them to employees who leave Huawei to start their own businesses. And provide entrepreneurial support and guarantee period according to the stocks in the hands of employees. But at the same time, it also stipulates that projects that start businesses through "internal plans" must accept Huawei's supervision and inspection, and the products of startup companies cannot compete with Huawei's products in the same industry, and they cannot dig people from Huawei. On the one hand, Huawei ensures that new capital (knowledge, manpower and professional skills) can contribute wholeheartedly and willingly to the development of the enterprise through stock option incentives and internal entrepreneurial plans. On the other hand, when the new capital becomes lagging capital, which hinders the development of the enterprise, the lagging capital is re-stimulated by the way of equity "gathering" to provide new peripheral service support for Huawei.
Fully stimulate the different potentials of employees at different stages and realize the optimal dynamic allocation of human resources. At the same time, Huawei also initiated the rotation system at the decision-making level, that is, the rotation chief operating officer system in which seven executive vice presidents preside over half-year office meetings, and the rotation CEO system in which three of the seven managing directors of the management team serve as half-year rotation chairmen. The application of these two systems has enabled Huawei to avoid the "mountain problem" in the ever-changing market competition, establish an independent cooperation mechanism between the decision-making layer and the executive layer, and form a dynamic balance of (too radical or too conservative) governance methods, making the decision-making process of the whole company more scientific and democratic, and forming a moderately democratic and moderately centralized organizational decision-making system.