Are Huawei employees’ salaries really that high?

Employees in the past two years. If you are a fresh graduate, then 5,000 for a master's degree, 3,500 for a bachelor's degree, plus a 1,000 work card subsidy. There is no consistent pattern for social recruitment, not to mention those from ZTE Harbor and other competitors. After the probationary period, not many people became full-time employees and received salary increases, and most of them maintained their income level. The number of companies recruiting into Huawei is usually higher, but the number is very small. There are many people in Huitong, but the salary is generally not high. Some of them were originally outsourced, and they are older and more capable, including 7,000 and 8,000. Those who are directly recruited into Huitong, those who have worked for two years as ordinary undergraduates, and many who have earned more than 3,000 points.

For work card subsidy, even if it is 1,000, you can only count 800. What's more, the food in the canteen is quite expensive, and the meal supplement is not even enough for three meals. Calculating this way, even if you have a master's degree for two years, your annual salary before tax will be 60K-70K. Those who can get a little salary increase will be slightly better, but there will be no fundamental change. Within two years, the year-end bonus is only about 10K. If there are only 3,000-4,000 people recruiting Huitong, that is quite few. I know many Huitong brothers with a monthly salary of 3,000 yuan. Even if they live in Xintianxia, ??Matishan, they don't have dinner at the company, but go to roadside stalls to eat fast food for 4 yuan.

For those who came in two years earlier, the salary has increased a bit, the year-end bonus is larger, and the annual salary can reach about 100K. Muddle better, maybe more. Not to mention overseas ones. It’s okay not to mention the subsidies and settlement expenses in exchange for life, health or quality of life.

Huawei’s stocks, or more accurately, the stocks of Huawei’s old employees, have greatly increased the income of (old) employees. For example, even if they joined the company in 1999 and only caught up with the last batch of stocks that were worth 1 yuan per share, those who are doing poorly should have stocks worth more than 100K by now. For third-level department managers, the system varies greatly from department to department. Of course, it also depends on the time of promotion. But basically it should be in the range of 200K-600K. The number here refers to the number of shares, not the current market capitalization.

Level 18 or above is the group of people who want to "self-criticize", including those who are already directors or are just at a level where there is no pitfall for directors to put this carrot, and the stocks will be more. This is also the area where many newcomers in this forum complain the most.

For example: a third-level department manager has been in the company for 6-8 years. Assuming (it may coincide with the actual situation), the monthly salary is 15K and the stock is 300K. Then, the total annual salary is 180K. The stock dividend is 330K, not counting work card subsidies and others, the annual income before tax is 510K, and the year-end bonus should be more than 50K. The market has more year-end bonuses, but fewer stocks. R&D is the opposite. In short, the market is slightly better when balanced, but it won't be too bad. If you don’t have money in the bank and don’t spend too much money, you can still have a few bundles on your balcony.

Sounds good to you? The annual salary is over 500K, but he is just a third-level department manager. Can't this be said to be Huawei's high income? This may be the origin of social rumors.

But I am afraid of taking everything seriously. After further analysis, we found that there are two problems.

1. The monthly salary is 15K, which should not be very high in Shenzhen, as far as the position of department manager is concerned. After all, it is not easy to be a third-level department manager at Huawei, and they are often people with relatively good experience and academic background. Most of the income actually comes from stock dividends. As a result, the old employees "leaned on this big tree" and waited to harvest the fruits every year. After collecting it, put it on the balcony to dry.

But wait! Are stock dividends income from work? Or should it be calculated as investment income? Or both? Let’s do some detailed calculations. 300K stocks, based on the current price of 3.94, the pre-tax market value reaches 1182K, 1.182 million. After deducting the tax and the income tax on the value-added part, it should be at least 850,000. Of course, some people will say that a lot of funds come from loans. This calculation is more complicated, so let’s simplify it.

The annual dividend of 330,000 yuan, 264,000 yuan after tax, actually costs at least 850,000 yuan in capital occupation. Yield = 26.4/85, which is roughly 31%. Whether this rate of return is high or low is a matter of opinion, so I don’t want to say more. Compared with the real estate and stock markets in recent years, it is obviously not good. Of course, compared with non-exceptional situations, it is still much higher than the 24% of the stock god Buffett.

I did the math for a long time just to illustrate that stock dividends are not all given by Huawei to its employees. Some of them should be distributed to employees from their own money. But everyone obviously has different opinions on the proportion.

2. The second problem is more serious. As we all know, old employees use stock income to support their retirement. They do not make progress or improve, do not strive for merit but strive for faults, which even suppresses the growth and upward channels of new employees. They are not strong in ability but have high income but high pretentiousness. Not to mention the company's policies, which are mostly influenced by older employees. After all, there are many veteran employees who become leaders. This obviously does not inspire others. Seriously speaking, it will cause metabolism problems in the entire body of the company and lead to chronic diseases.

What to do? Of course the higher-ups don't know this. It is impossible to expect new employees with a monthly salary of 3K or 5K to support high dividends for a long time. The old employees know nothing except "Huawei culture", and what's worse is that they are still in management positions! This situation will have to change sooner or later. So DGDX was launched. It is nothing more than increasing salary income and bonus income, and then reducing stock dividends to return the incentive effect of the distribution mechanism to normal. But the actual effect is also a matter of opinion. A monk with a crooked mouth will also recite the sutra crookedly.

2. It is impossible to obtain high income in Huawei in a short period of time. Li Yinan’s myth will not repeat itself in today’s Huawei.

3. Every "movement" cannot be pulled down. Otherwise, you won't be doing much better. For example: stock allocation before 1999, MBO, DGDX, if you don't miss it every time, then you still have hope to make some money on the balcony. If you happened to change departments at that time or were unlucky in the department you were in, or if you were not of a high enough level to be "cut across the board" to the back when this movement happened, you would be in danger.

Taken together, the question in the title of this article cannot be answered in one sentence. There is so much nonsense, I hope I can explain it clearly