Research On Employee Stock Ownership Plan In Kaidi Eco

As one of the ways to motivate employees and help employees improve their work efficiency,as with performance appraisal,employee stock ownership can stimulate employees' work motivation,but the difference is that employee stock ownership enables employees to obtain residual income from the company through equity,and the employee's last The benefits are directly tied to the corporate income.In a sense,this incentive is more effective.The direct participation of employees and the implementation of the equity incentive system in listed companies are the implementation methods of the employee stock ownership system.With the continuous advancement of the society,the policies on employee stock ownership have become more and more perfect and more standardized.For example,the release of the “Guiding Opinions on the Pilot Implementation of the Employee Stock Ownership Pilot Program” in 2014 marks the employee shareholding.The system will be increasingly valued.The emergence of employee stock ownership not only enriches the employee incentive channel,but also helps to achieve a win-win situation for both employees and the company.However,due to the lack of practice in employee stock ownership in China,the current research on employee stock ownership focuses on motivation analysis and other aspects,relying on cases,targeted implementation of employee shareholding cases and problems in case design is less.Domestic listed companies will also use incentives to encourage employees,but at this time,they are mostly aimed at senior managers.In the face of senior managers,companies agree to sell their shares at a lower price than the market or other income.Other cash payments,in order to encourage senior managers to create value for the company,play a role,bring benefits,and finally realize that managers and enterprises are a win-win situation.However,with the development of companies such as the Internet,the limitations of the employee stock ownership system have emerged.The returns of such companies tend to focus on the quality of work of a wider range of employees.Therefore,many boss companies began to use the employee stock ownership system to achieve incentive purposes.In addition to changes in the scope of incentives,the management of employee stock ownership plans reflects differentiating features from other implementation carriers.Although the employee stock ownership plan can more motivate every employee,this change also brings some challenges.The most obvious one is the equity allocation and stock price challenges.Under such a background,it is very necessary to conduct research on the employee stock ownership plan of listed companies in China.Therefore,this article relies on the case to analyze the implementation process of the employee stock ownership plan of Kaidi Eco-Enterprise.This paper is divided into the following parts: First,the relevant theoretical research on the employee stock ownership plan.This part mainly introduces the research background,significance,etc.By summarizing relevant research at home and abroad,it further understands the definition and classification of employee stock ownership plans,and then elaborates the theoretical basis of the employee's shareholding plan.In order to better illustrate these theories,this article details the entire process of implementation of the Kaidi Eco Employee Stock Ownership Plan.Detailed understanding and explanation of Kaidi Eco's stock,source of funds,and employee stock ownership plan and management methods.The Kaidi Eco Employee Stock Ownership Plan is a collective trust plan.The source of funds is part of the trust plan leveraged funds,part of which is self-raised by employees.The participants include 15 senior managers,but the total number cannot exceed 1,000.The management model of Kaidi Eco-Employees is managed by the company's establishment management committee.In this paper,it can be seen that there is a lack of supervision and binding effectiveness.In recent years,China has focused on supporting biomass power generation technology.Therefore,before the draft of the Kaidi Eco-Employees' Shareholding Plan was promulgated,the company's business expanded rapidly and the income continued to rise.However,this also laid a hidden danger for the rapid decline of the stock price in the future.The above information is described in detail for the next case study to be better.Analyze the case after introducing the relevant background.Firstly,it explains the industry background and internal background of Kaidi Eco's employee stock ownership plan.The biomass power generation industry has greater instability in cash flow,slower capital recovery,and the company's scale expansion is too fast and management is not well managed.Under the circumstances,there is a large risk of liquidity,which may lead to the situation of internal and external troubles.In this context,the motivation of Kaidi Eco's implementation of the employee stock ownership plan and the specific implementation plan of the employee stock ownership plan are analyzed.Next,this article judges the implementation of the employee stock ownership plan from the changes in the stock market.After analysis,it is found that the stock price of the company changes in the short term but it is impossible to see the impact of the employee stock ownership plan on the company.In terms of long-term performance,the stock price has continued to decline and even eventually suspends and “explosive positions”,indicating that there are many problems in the employee stock ownership plan itself and behind it.Then,it analyzes the design plan of the Kaidi Eco Employees Shareholding Plan and Several specific problems in the implementation process,such as the use of double leverage to raise funds,increased the price risk.The custodians were caught in pledge disputes and debt crises.Failure to replenish positions as agreed directly led to the “explosion” of the employee stock ownership plan,and the funds invested by employees and management did not return.If the renewal period is too short and the employee shareholding ratio is low,the plan is essentially a short-term benefit rather than a long-term incentive.After analyzing the planned plan and the problems in the implementation process,point out and analyze the reasons for these problems.In the last part of the article,the lessons of the Kaidi Eco-Employees' Shareholding Plan were discussed.The recommendations and prospects for the development of the employee stock ownership plan in China were given.