Research On Optimization Of Su Ning Commerce Group Co., Ltd. Employee Stock Ownership Plan

The typical characteristic of modern company is the owner of the company will be operating rights transfer to possess professional knowledge managers, and the formation of the principal-agent relationship.However, delegates agent relationship leads to the agents and clients to seek their own interests and gives bad impact on the company’s long-term and healthy development.With the development of the knowledge economy, the contradiction between the two sides are human capital and currency capital. Modern company want to through the incentive mechanism to improve the performance level of the company,so they need to coordinate and balance the relationship between agents and principals.Employee Stock Ownership Plan can reduce problems about principal-agent relations.June 2014, China Securities Regulatory Commission released the pilot guidance on listed company employee stock ownership plan, provides policy support for listed companies to implement this plan.This paper takes the retail giant Su Ning Commerce Group’s employee stock ownership plan for example and adopts the method of case analysis. Firstly, this paper analyzes the reason that it takes employee stock ownership plan.Secondly, this paper describes the content of Su Ning Commerce Group’s employee stock ownership plans.It is pointed out that problems existing in the design scheme,mainly for mandatory employee stock ownership,employee benefits high risk and not reduce the loss of talents effectively. Reasons for the above problems are mainly that designs does not take into account the external stock market changes, employee contribution to pressure and low degree of concerned for new employees.Finally, according to the different external environment to give corresponding optimization designs.In the context of the bear market by self raise and lever financing mode to enlarge the employee benefits.In the context of the bull market by self raise and net profit extraction reward fund mode to reduce employee benefits risk.Either in the background of employee stock ownership plan, if there is a loss of staff, the company can withdraw funds from the incentive fund to make up for the loss of part of the staff.This article from the perspective of the employee gives optimization schemes. These suggestions could also be used in other companies.