Employee Stock Ownership Plan Design And Implementation Effect Analysis

In June 2014,the China Securities Regulatory Commission issued the "Guiding Opinions on Pilot Projects for Listed Companies to Implement Employee Stock Ownership Plan." This document has laid down the institutional basis for the implementation of employee stock ownership by listed companies in China,and provides non-listed companies with certain reference as well.However,in the actual operation process,some companies' employees' shareholding plans have not been implemented for various reasons before they are put into practice.The implementation effect of each company is not as satisfactory as expected.This article defines the related concepts of ESOP,summarizes the theoretical basis and different models of ESOP at home and abroad,and summarizes the key elements of ESOP.Based on the theoretical research,this article takes A company as a sample.By analyzing its ESOP program design,this article tries to find the highlights and deficiencies in its design.By using financial indicators to study its operating performance,the economic value-added analyzes the increase in the wealth of its shareholders,the non-financial indicators analyze its market competitiveness and innovation capabilities,this essay evaluates its ESOP implementation effects in a multi-faceted manner.This article believes that the implementation of ESOP of A Company has basically achieved its stock holding motive,which has improved the company's operating performance,shareholder wealth,and market competitiveness to a certain extent.However,the effect of innovation capability has not been obvious.Not all companies are suitable for implementing ESOP.Companies need to consider carefully before making decisions.A reasonable employee stock ownership plan is a necessary guarantee for success.In the process of project design,we must consider the key elements of the ESOP program in accordance with the company's specific circumstances and design the ESOP program according to local conditions so as to achieve the expected incentive effect.