Case Study Of Employee Stock Ownership Plan Of Yuntu Holding Company

In June 2014,a large number of listed companies issued draft employee stock ownership plans after the release of the guidance on the pilot implementation of employee stock ownership plans by listed companies.Employee stock ownership plan is a form of equity incentive,did improve corporate governance structure and improve the staff's loyalty and so on merits,but the present situation of our employee stock ownership plan is employee stock ownership plan of the listed companies is more small and medium-sized private enterprises and high-tech enterprise,employee stock ownership plan,the homogeneity of stronger majority employee-owned treated as an employee benefit plan no long-term institutional arrangements,the widespread use of leverage is speculative,and so on.Through empirical analysis,this paper finds that the employee stock ownership plan issued in China at the present stage can indeed have a positive impact on the company's performance and has a strong incentive effect.Some employee stock ownership plans have good returns,which bring very rich benefits to the company's employees.However,at the same time,more than half of the employee stock ownership plans are in the state of loss,which goes against the original intention of improving the company's welfare and is of great research value.Therefore,this article selects the loss is very serious Wintrue as a case analysis,found that the company wanted to improve employee benefits by employee stock ownership plan release at the same time play incentive effect of employee stock ownership plan promote the development of the company,but the issue of employee stock ownership plan just by announcement effect brings to the company's share price rise in short-term and longterm stock price continued to fall,employee stock ownership plan losses,corporate performance does not improve.The author finds that firstly,the scheme design of the employee stock ownership plan of Wintrue is not enough to achieve the best incentive effect.Secondly,the limited positive impact of employee stock ownership plan on corporate performance is covered by the adverse situation of the company's own performance development.At the same time,the poor timing of issuing ESOP and the insufficiency of its own scheme design make the ESOP cost too high.Finally,the irresponsible share changes of major shareholders in the later period accelerated the stock price decline caused by poor performance.These reasons together make the employee stock ownership plan fail to generate sufficient incentive effect and bring no benefits to employees,so it is deemed as a failed employee stock ownership plan by the author.Finally,this paper proposes to gradually relax the restrictions on employee stock ownership at the policy level,so that companies can better design employee stock ownership plan according to their own situations,and thus enable employee stock ownership plans to play a greater role.At the level of the company,the company should be more prudent in issuing employee stock ownership plans.The macro environment and the development of the company should be taken into consideration.At the same time,employee stock ownership plan should be promoted to participate in corporate governance so that employees can truly participate in corporate governance and play a deeper role of ESOP.Encourage the long-term institutionalization of employee stock ownership plan,so that the company can arrange employee stock ownership plan from a longer perspective,and give full play to the long-term influence of employee stock ownership plan;At the same time,employees participating in the ESOP should also be fully aware of the possible risks of the ESOP and not be speculative.