Discussion On How ESOP Plans Should Be Legislated In China

Employee Stock Ownership Plans, ESOP is a form of property rights in which the employee buys the company stocks and entrust a management institution to exert a mass right. From its naissance, ESOP has created thousands of miracles in economic domain. China introduced ESOP in early 1990s. It was used for state-owned enterprises to accomplish their strypped-down. Anyhow, after 6 years' attemption, ESOP met its abortion.Looking back to its history in overseas countries, we may find that a fine legal environment is the key reason for the ESOP's prosperity in those countries. We don't have a proper legal environment here in China for ESOP, therefore, the ESOP is sure to meet drawbacks sooner of latter.In order to solve this problem, this article firstly reviewed the history of ESOP, and analyses the merits of ESOP legislation. Then, the article retrospect our practical experiences on ESOP and summarizes the limitations that a invalid legal environment can bring to an innovation plan. Thirdly, the article clutches at the global economic evolution trend, indicating that now is the right time to carry into execution the ESOP legislation. Finally, the article gives its viewpoints on how to fulfill this legislation plan in details.This article uses great lengths to demonstrate the writer's view on the feasibility of ESOP legislation and the detailed legislative advice.Though its only a small try for China's ESOP legislation, the writer intends to start a heated discussion via her article.