The most talked about thing behind Huawei’s success is Huawei’s virtual equity incentive system.
Huawei is the most typical representative of equity incentives in China and the first domestic company to implement equity incentives. Since 1999, it has implemented a full-employee shareholding system.
Huawei has long adhered to the concept of "finance is scattered and people gather". Ren Zhengfei only retains 1.4% of the shares and has no institutional investors. The remaining 98.6% of the interests are shared with employees, dividing the shares and making the company bigger.
Of course, Huawei's equity system was not developed overnight. Instead, it has been optimized several times before it has developed into the world's largest successful case of employee equity incentives for non-listed companies.