A Case Study On ESOP Of State-owned Enterprises Under The Background Of Mixed Ownership Reform

The employee stock ownership plan originated in the United States in the 1950 s and is an effective means for companies to motivate employees.Compared with foreign countries,China’s employee stock ownership plan started relatively late.It first appeared in enterprises in the form of “internal employee stocks” in the 1980 s.Due to lack of experience,many problems occurred during the implementation process.At the end of the 1990 s,it was suspended by the China Securities Regulatory Commission.In November 2013,at the Third Plenary Session of the Eighteenth Central Committee of the Party,it was proposed to allow mixed ownership economies to implement employee shareholding,forming a community of interests between capital owners and workers.It can be seen that how to better solve the relationship between the company and employees has become an increasingly important part of issues related to the reform of state-owned enterprises.In August 2016,the SASAC,the Ministry of Finance and the CSRC jointly issued the opinions on the pilot implementation of ESOP in state-owned mixed ownership enterprises,and in September 2018,the national development and Reform Commission and other eight departments jointly issued the opinions on several policies on deepening the pilot implementation of mixed ownership reform,which shows that ESOP has become a driving force for the reform of mixed ownership It helps to form the interest community of capital owners and workers.However,the implementation rules of the shareholding plan have not yet been unified and are still in the pilot stage,so the effect of employee stockholding still needs to be verified by a large number of cases.Under the current situation,whether the implementation of the ESOP can promote the process of mixed reform,whether it can achieve effective incentives for employees,whether it can improve the company’s operating level and how the market reacts to the ESOP are very important in the decision-making of the company’s ESOP.SAIC is a large state-owned enterprise controlled by SASAC.Its main business is vehicle manufacturing.For SAIC,equity ownership of core employees can achieve incentive effect,thus driving the improvement of overall corporate benefits,improving internal resource integration,and increasing market competitive advantage.Through the implementation of employee stock ownership plan in recent years,state-owned enterprises(soes)screened found in China’s automobile manufacturing center,Shanghai automotive industry corporation under the background of industry environment of implementing the employee stock ownership plan,the plan of the group’s governance and improve operating performance has played a big role,so take it as the research case is very practical.This article is based on the actual case of the implementation of the employee stock ownership plan of the SAIC Group.First,based on the research background and significance,it summarizes the views of domestic and foreign scholars on mixed ownership reform and employee shareholding in previous years,and summarizes the mixed ownership reform and employee shareholding.The relevant theory of the stock plan is introduced.Then,in case analysis part details the SAIC,the specific content of employee stock ownership plan,characteristics and motivation,and then from the "mix" effect,incentive effect,the effect of performance and market effect of the four aspects of employee stock ownership plan implementation effect is analyzed,found that the SAIC,the implementation of employee stock ownership plan change effectively promote the mixing process,not only has a positive effect on employee motivation,also played a positive market effects,compared to the trend of the industry overall decline in the performance at the same time,SAIC,still maintained a good performance.On this basis,this paper analyzes the effect mechanism of SAIC-SAIC’s implementation of ESOP from three aspects: reducing agency cost,improving internal incentive mechanism and reducing enterprise risk.Finally,based on the case study of SAIC motor corporation,the paper puts forward research conclusions:(1)employee stock ownership plan promotes equity diversification of state-owned enterprises,realizes direct participation of shareholding employees in corporate governance,and promotes the process of mixed ownership reform;(2)the implementation of ESOP not only improves the management efficiency and reduces the employee turnover rate of state-owned enterprises,but also increases the proportion of core technical personnel and realizes the incentive for employees;(3)the implementation of ESOP has a positive effect on the profitability,operational capacity,solvency and growth capacity of state-owned enterprises and promotes the performance growth;(4)the implementation of the ESOP has generated a good response from the market and sent a positive signal to the market.The research conclusions of this paper provide practical reference for the development of other state-owned enterprise employee stock ownership plans,and help relevant departments to correctly analyze the problems in the pilot process of employee stock ownership,and at the same time provide case support for the theoretical research of employee stock ownership plans in the context of China’s mixed reform.