Huawei reportedly plans to pay the lowest dividend per share to its staff

A recent report from Shanghai Clearing House says that Huawei plans to pay its staff the lowest dividend per share so far. The company intends to divide the $10.65 billion amount into various small shares for its current and retired employees.

The report cites that Huawei Investment and Holding Co. has around 51.3 billion shares, and is considering paying a cash dividend of 1.5 yuan per share. Since 2019, this counts as the lowest dividend pay out for the staff members working at Huawei.

Huawei mainly distributes incentives based on the ESOP (Employee Stock Ownership Plans) + TUP strategy. These work as long-term motivations from the firm for its staff.

Share dividends play a vital role in a Huawei employee’s income. The 2023 Annual Report says that over 151,700 workers including current and former have participated in the shareholder scheme, as of December 2023 to obtain equity benefits.

Huawei pays the lowest dividend to its staff (Image Credits: Reuters)

Further inputs describe that the overall revenue of the Huawei Investment and Holding Corporation increased by 10% last year. This achievement became possible due to the consumer business being at its height in 2023, especially for 5G phones.

Even though the Chinese tech giant has been surrounded by the U.S. ban and other trading challenges, it managed to grow and introduced products like the Mate 60 and P60 series. Now consumers have locked their eyes on the Huawei P70 lineup.

The Shanghai Clearing House filing doesn’t reveal any major details on the dividend distribution. On the other hand, the specific period related to the subject is also currently missing from the frame though we may get new inputs in the coming days.

(Source – Reuters)