The Discussion Of ESOP In Zhangjiang Hi-tech Company

Employee Stock Ownership Plan(ESOP)originated in the United States in the 1950 s.Since then it evolved and flourished in the 1970 s until now.It is a long-term performance reward scheme that enables employees to participate in making business decisions as shareholders,take on business risks and gain profits.It is of great importance for an enterprise to achieve its long-term development goal.The theoretical research and practical activities related to employee stock ownership plan in China began in the 1980 s.They have tried and innovated in the process of their development and have made some theoretical achievements and practical experiences.In 2014,the CSRC announced the “Guiding Opinions on Pilot Implementation of Employee Stock Ownership Plans of Listed Companies”,which provided policy support for the implementation of employee stock ownership plan in our country and promoted the standardized development of employee stock ownership.Employee stock ownership plan,as a long-term benefiting mechanism widely promoted by employees in recent years,has filled the loopholes in the lack of motivation for employees in our country and is being adopted by more and more enterprises.However,due to the short history of employee stock ownership plan in our country,some experts mostly focus on the legal problems,motivation and impact on the company's performance of employee stock ownership plan.There are few case studies on how to operate about ESOP.Therefore,this article selects Zhangjiang Hi-Tech as a case enterprise,discusses in detail the specific operational procedures of its employee stock ownership plan,and provides other listed companies with experience to learn from.The article mainly uses the method of combining theoretical research and case study to discuss how the listed company implements the employee stock ownership plan in detail.First of all,in the part of theoretical research,this paper introduces the relevant background,research significance and train of thought,reviews and summarizes the domestic and foreign scholars' research on employee stock ownership,and then elaborates the concept,characteristics and implementation procedure of employee stock ownership plan in listed companies,and further discusses the two-factor theory,human capital theory and principal-agent theory to lay the theoretical foundation for the dissertation;secondly,in the field of case studies,this paper introduces the company employee ownership of the implementation of the program profile and evaluates its impact on profitability,operating efficiency and solvency by combining the operation of Zhangjiang Hi-Tech's ESOP.After that,the paper mainly analyzes the specific procedures of Zhangjiang Hi-Tech's employee stock ownership plan,including the early-stage preparation,the specific plan design and the supporting measures in the implementation process.Trust will be introduced to integrate with the employee stock ownership plan.Finally,through the analysis of the early-stage preparation,the specific plan design and the supporting measures of ESOP,this paper summarizes the experience of Zhangjiang Hi-Tech's ESOP and the issues that should be focused on.Establishing salary rewards and punishment system,optimizing equity trust mode,setting reasonable duration and lock-up period are important experiences in promoting employee stock ownership plan.At the same time,we should pay attention to improving some laws and regulations,especially preferential tax policies before implementing employee stock ownership.We should also enhance employees' participation and enthusiasm in the operation of the entire shareholding plan and increase the employee's shareholding.We should also pay attention to strengthening internal control in every aspect of ESOP,so as to improve internal control better and fully realize employees' shareholding value.