Huawei CEO imposes US$160,000 fine on himself for bad leadership
20 January, 2018
Ren Zhengfei, founder and CEO of smartphone maker Huawei Technologies, has issued a document critical of the poor management among leaders in the company and imposed a fine of 1 million yuan (US$160,000) on himself, The Paper reported.
The document, called Disclosure of Accountability to Leaders In Charge Of Poor Management, said some business units have experienced serious quality issues and business fraud. It also says, management of the company should take responsibility for ineffective leadership.
Guo Ping, Xu Zhijun, Hu Houkun, the three deputy chairmen and rotating CEOs, were also each fined 500,000 yuan. Li Jie, the managing director who is in charge of Huawei’s sales system, was also penalized.
It is reported that, in Huawei, middle and high-level managers are often downgraded because of mistakes, but they will be promoted again as long as they have outstanding performance. The dramatic ups and downs is considered a norm in Huawei’s management model.