SAIC Group's ESOP Case Study

Since the Third Plenary Session of the 18 th CPC National Committee,with the deepening of the reform of the state-owned enterprises' mixed ownership system,the state-owned listed companies have begun to embark on an outbreak of their employee stock ownership plans.Against this background,how to design and promote employee stock ownership plan has great research significance and space.This article selected a large listed automobile company SAIC Group,which is affiliated to the Shanghai State-owned Assets Supervision and Administration Commission,to carry out an in-depth analysis of its employee stock ownership plan program,discovered the highlights,and found that there are shortcomings and made recommendations accordingly.This also provides lessons for the plan design and implementation of state-owned enterprise employee stock ownership plans.The article mainly uses case analysis,comparative analysis and event analysis.In the introduction part,the background and significance of the research,literature review at home and abroad,research framework,and innovation are introduced.Then it elaborates on the related theories involved in employee stock ownership plan.Then from the company's profile,implementation background,implementation objectives and a brief analysis of the program to introduce the company's employee stock ownership plan.It also studies the impact of the program release on the company,including market response analysis,impact on human capital,impact on sales activities,impact on R&D activities,and impact on financial activities in the short term.Afterwards,we will focus on analyzing the highlights and inadequacies of SAIC's employee stock ownership plan in the design of the project and suggest corresponding improvements.Finally,it concludes the conclusion of the article and summarizes the lack of research.Based on the case study,there are two main conclusions: First,employee stock ownership should fully consider the factors affecting the long-term incentive effect in the design of the plan;second,it should fully integrate the actual situation of the company and its own needs when planning the design of the plan.This paper examines the current status of the deepening of the mixed ownership reform of state-owned enterprises and hopes to provide state-owned enterprises with some case materials and practical evidence to provide some reference for the state-owned enterprises in formulating employee stock ownership plans in the future,and to promote the continuous development of the reform and help.The realization of long-term planning goals of the enterprise.