Applicability Analysis, Based On The Structural Factors Of The Esop

The theory and practice of employee stock-ownership plans (ESOP) originated from Western Countries. It is an employee beneficial plan through which the employee could benefit from a long term perspective from investing in their enterprise; or rather it is an employee-beneficial mechanism for making its employees its shareholders. In China, we began the theoretical study and application of ESOP from 1980s. As the domestic capital market becomes increasingly active, and the relevant laws and regulations improve steadily, ESOP has been favored by more and more enterprises as an outstanding motivation.The present study focuses on the feasibility of ESOP. On the basis of the relevant literature, author divides the work structure into low, medium and high degree by three factors, and analyzes the match between ESOP and different degree of work structure. After the substantial evidence research and the theoretical analysis, the research shows that ESOP will suit the employee at the low work structure level more. And author divides the enterprises into labour-concentrated and knowledge, technology-concentrated, then makes ESOP matching models for tow types of enterprises in order to apply the conclusion to practice in enterprises.The model is following. Most employee in the knowledge, technology-concentrated enterprises are at the low and medium work structure level, so they are fit to carry out the general form of ESOP; but most employee in the labour-concentrated enterprises are at the high degree, they should carry out managerial ownership incentive.