As far as I know, Huawei was the only real employee-coshared company on the planet issuing dividends attached 'virtual' stocks to their employees where virtual means stock ownership validity tied to the employment.
Engineers working in Huawei bought shares priced at net asset value with salary or bank loans and gain dividends at a yearly ROI around 17%~75%.
This unique 'communist' capital structure was created due to lack of venture capital and outside financing. It's also an experiment before China fully adopting western style corporation law.
Huawei has a complicated capital structure of founder (1.42%) + employee union (98.58%) which scared many big investors away and hindered it from IPO.
Recently, Huawei adjusted the virtual stock policy to freeze its capital structure because the structure complexity incurred a lot of accusations from the US government and harmed its growth in several major markets.
Alibaba also failed to request change of Hongkong IPO rules to apply employee-partnership to protect its senior employees.
Therefore, employee equity isn't merely about internal profit sharing or fairness at all. Investors or traditional capital markets don't like the 'communist' flavored capital structure.
Employee option is the only viable solution before some one totally disrupt the current capital market.
Engineers working in Huawei bought shares priced at net asset value with salary or bank loans and gain dividends at a yearly ROI around 17%~75%.
This unique 'communist' capital structure was created due to lack of venture capital and outside financing. It's also an experiment before China fully adopting western style corporation law.
Huawei has a complicated capital structure of founder (1.42%) + employee union (98.58%) which scared many big investors away and hindered it from IPO.
Recently, Huawei adjusted the virtual stock policy to freeze its capital structure because the structure complexity incurred a lot of accusations from the US government and harmed its growth in several major markets.
Alibaba also failed to request change of Hongkong IPO rules to apply employee-partnership to protect its senior employees.
Therefore, employee equity isn't merely about internal profit sharing or fairness at all. Investors or traditional capital markets don't like the 'communist' flavored capital structure.
Employee option is the only viable solution before some one totally disrupt the current capital market.