A Case On The Mode Of Employee Stock Ownership In Listed Companies

How to effectively encourage employees has been the core issue for listed companies to corporate governance.Equity incentive,as an incentive model,relieves the conflict of interest between management and shareholders and improves the performance of the company.However,the equity incentive audience is only the company's directors,supervisors and other corporate core management,how to benefit the majority of ordinary employees has become another major problem in the governance of listed companies.In accordance with the definition of the Commission,the Employee Stock Ownership Plan(ESOP)refers to the arrangement of the listed company to the employees through the legal means to enable the employees to obtain the shares of the company and hold the shares for a long period.At this point,employees both investors and the workers of the binary properties,the work of the initiative and creativity has been greatly released.According to the data from Wind information and author's manually finding,between January 1,2014 to May 5,2016,510 listed companies have completed or are implementing employee stock ownership plan.In terms of its management,104 listed companies choose selves-management,the remaining 406 ask for commission management by the securities companies.Obviously,the commission management is the common choice for more than 70%listed companies.Based on the above background,this paper put L Company as object of case analysis,which is in the key period of the transformation and upgrading.Firstly,summarizes the existing management methods of the ESOP.Secondly present situation of L Company to clear the driving force of implementing this plan.And then systematically analyzes the core details of implementation to summarize the characteristics of the case model,tying best to find new ideas for those listed companies,which plan to implement ESOP.