The BOD has established the Human Resources Committee, the Finance Committee, the Strategy & Development Committee, and the Audit Committee to assist and support BOD operations.
Human Resources Committee
The Human Resources Committee (HRC) manages and optimizes core corporate elements such as organization, talent, incentives, and culture. It operates under the BOD to develop, determine, and oversee the implementation of key policies and transformation initiatives relating to HR management. The committee aligns HR policies with the company's HR management philosophy and core concepts to ensure policy consistency. These policies also reflect the business characteristics and management models of departments at all levels to support business development.
The main responsibilities of the HRC are to:
- Manage HR initiatives for key managers and talent (including succession planning, deployment, appointments/removals, performance appraisals, compensation, and incentives).
- Set policies for incentives, benefits, the compensation structure, and job matching.
- Set policies for organizational development and optimization; and manage HR budgets and staffing for each budgetary unit.
- Set policies for and provide guidance on learning and development.
- Set policies for employee discipline and oversee disciplinary action for major violations.
- Set policies for and provide guidance on health and safety.
- Manage HR strategic planning and key HR transformation initiatives.
The HRC holds monthly meetings. Business executives, HR executives from different departments, and various experts are invited to attend as non-voting participants. The committee met 12 times in 2015, and achieved its annual objectives in managing HR strategy, developing major HR policies, making key HR decisions, and overseeing policy execution. Specific initiatives are as follows:
- Effectively examined internal and external developments in HR management; formulated the company's HR Strategy Guide based on the global development needs of multiple business groups, which provided effective guidance to all departments on HR strategic planning; and conducted special research on key strategic issues regarding Huawei's future-oriented HR management.
- Continuously studied and identified key issues that impacted Huawei's organizational operations; began to optimize the operations of relevant organizations; continuously optimized the workforce budget management mechanism to increase its flexibility; and explored future-oriented methods of managing the size of the workforce.
- Implemented different management initiatives for different groups of employees in terms of Competency & Qualification (C&Q), compensation, and incentives to inspire passion across the organization; widened the gap in incentives between different groups of employees to boost passion among a larger number of outstanding employees; continuously optimized HR policies for hardship regions to help effectively implement the company's policy of providing more incentives to dedicated employees.
- Continuously optimized the internal talent management framework and employed different methods when managing different groups of employees; attracted external talent and retained internal talent despite increasingly fierce competition in the talent market, stabilized the workforce, and gradually adjusted its structure to meet strategic and business needs; quickly improved the skills and knowledge structure of a large number of employees by optimizing self-learning and strategic reserve mechanisms.
- Continuously improved healthcare initiatives, and introduced high-quality medical services to improve both the quality and capabilities of healthcare for all employees.
- Gradually explored and established the accountability mechanism for business violations, and standardized their daily management.
The HRC comprises 15 members, including BOD members, senior business executives, and senior HR experts.
- Chairman: Mr. Hu Houkun.
- Members: Mr. Guo Ping, Mr. Xu Zhijun, Mr. Xu Wenwei, Mr. Li Jie, Mr. Ding Yun, Ms. Meng Wanzhou, Mr. Li Yingtao, Mr. Wan Biao, Ms. He Tingbo, Mr. Zhang Ping'an, Mr. Zha Jun, Mr. Li Jin'ge, Mr. Peng Bo, and Mr. Li Shanlin.
The Finance Committee (FC) is the company's overall enterprise value integrator. It operates under the BOD to exercise macro-control over the company's business operations, investment activities, and enterprise risks, helping to strike a dynamic balance between opportunities and resources to facilitate the company's long-term sustainable growth.
The main responsibilities of the FC are to:
- Align resources with business needs based on the company's resources and resource acquisition capabilities.
- Set financial objectives for the growth and investment projects of the company and each responsibility center; and determine the standards, structure, and pace for resource investments.
- Measure the monetary value of key strategies, conduct forward-looking forecasts and analysis, and submit proposals to the BOD; and review the company's annual budget plan, approve the annual budget for each responsibility center, and ensure closed-loop management of corporate-level planning, budgeting, accounting, and assessment.
- Review the capital structure plan; and propose major financing activities, the asset structure, and profit distribution.
- Review the company's key financial policies, annual financial statements, and related information disclosures.
- Review capital investment and strategic cooperation projects, submit proposals to the BOD, and periodically assess the execution of such projects.
- Review the company's risk management framework, and provide advice on operational compliance and business continuity management.
The FC holds monthly meetings and convenes special sessions as necessary. In 2015, the FC held 12 regular meetings and two special sessions. Based on business needs and BOD's requirements, the FC reviewed such key items as the company's medium-to-long-term development plan, annual budget plan, operational management, capital investment projects, capital structure, enterprise risk management, and subsidiary and joint venture management. The FC then discussed and established financial policies and systems, reviewed and decided on key initiatives, and monitored their execution.
The FC comprises 15 members, including BOD members and various experts.
- Chairman: Mr. Guo Ping.
- Members: Mr. Xu Zhijun, Mr. Hu Houkun, Mr. Xu Wenwei, Mr. Li Jie, Mr. Ding Yun, Ms. Meng Wanzhou, Mr. Liang Hua, Mr. Yi Xiang, Mr. Zou Zhilei, Mr. Yan Lida, Mr. Yao Fuhai, Mr. Song Liuping, Mr. Peng Qiu'en, and Mr. Jiang Xisheng.
Strategy & Development Committee
The Strategy & Development Committee (SDC) develops, sets, and executes the company's strategic directions. The SDC gains insight into major industry and technological trends, and changes in customer needs; and identifies opportunities and paths for the company's development. Through macro-management of industrial investments, technologies, business models, and transformations, the SDC ensures that concerted efforts are made to sustain the company's growth.
The main responsibilities of the SDC are to:
- Manage the company's medium-to-long-term strategic planning, key initiatives, and major objectives of the year.
- Manage the company's brand strategy, brand architecture, and brand attributes, as well as publicity strategy and direction.
- Manage the company's strategy for strategic partnerships and alliances, as well as the selection of strategic partners and alliances.
- Manage the company's business portfolios and scope.
- Manage the company's pricing policies, commercial authorization principles, and actual pricing of key strategic products.
- Manage the company's medium-to-long-term technology development planning, standards and patent strategy, and major technology investments.
- Manage the company's medium-to-long-term business transformation strategy, process and management system structures, quality policies, etc.
- Review the company's business portfolios to ensure investments are made in strategic domains.
The SDC held 12 regular meetings and one special session in 2015. In accordance with the positioning and responsibilities determined by the BOD and based on the pre-determined strategic goals, the SDC continued to strengthen the enterprise business development strategy, identify new growth opportunities for the carrier business, and facilitate the consumer business in developing a global mid-to-high-end brand. On this basis, the SDC aims to make the industry pie bigger, plan for the future, and support the company's long-term development.
The SDC comprises 15 members, including BOD members, senior business executives, and various senior experts.
- Chairman: Mr. Xu Zhijun.
- Members: Mr. Guo Ping, Mr. Hu Houkun, Mr. Xu Wenwei, Mr. Li Jie, Mr. Ding Yun, Ms. Meng Wanzhou, Mr. Yu Chengdong, Mr. Li Yingtao, Mr. Liang Hua, Mr. Zhang Ping'an, Mr. Zha Jun, Mr. Deng Biao, Mr. Wang Shengqing, and Mr. Zhang Shunmao.
The Audit Committee (AC) operates under the BOD to oversee internal controls, including the internal control system, internal and external audits, corporate processes, legal compliance, and adherence to the BCGs.
The main responsibilities of the AC are to:
- Approve the annual internal audit plan, and review its scope, required resources, and audit outputs.
- Approve corporate policies for internal controls; approve the corporate development plan for internal controls and the plan's key milestones; and regularly assess the company's internal control status.
- Evaluate the effectiveness of the ethics and compliance function, legal compliance, and adherence to corporate policies.
- Approve the selection of the external auditor, notify the BOD of any proposed change to the external auditor for approval, approve related budgets, and evaluate the work of the external auditor.
- Supervise the completeness, accuracy, and legal compliance of the company's financial statements; and review compliance with accounting policies and all financial disclosures.
- Approve internal control Key Performance Indicators (KPIs), and instruct Global Process Owners (GPOs) and business executives to report internal control results.
The AC holds quarterly meetings and convenes special sessions as necessary. Business executives and various experts are invited to attend as non-voting participants. The committee held six meetings in 2015. Focusing on topics such as risk management, the development of the internal control system, and anti-corruption, the committee:
- Reviewed and approved the company's annual internal audit plan and annual plan for internal controls over global processes.
- Received reports on Internal Control Maturity trends, SACAs (including internal controls over financial reporting), regions' internal control improvements, Business Process Architecture (BPA) and process management, and progress in resolving top internal control issues.
- Improved employee compliance with the BCGs through anti-corruption education and publicity of major audit findings and non-compliance cases.
- Arranged discussions between the committee Chairman and the external auditor on management improvement proposals.
The AC comprises 10 members, including Supervisory Board members, BOD members, and various experts.
- Chairman: Mr. Liang Hua.
- Members: Mr. Zhou Daiqi, Mr. Ren Shulu, Mr. Li Jianguo, Mr. Yin Xuquan, Mr. Tian Feng, Mr. Song Liuping, Mr. Yi Xiang, Mr. Li Jin'ge, and Mr. Hui Chun.