Case Study On Crystal Photoelectric Employee Shareholding Plan

Employee shareholding plan is a kind of institutional arrangement that enables employees to enjoy the rights and interests of shareholders such as the distribution right of the residual value of the company and the participation right of the business decision by allowing the employee to hold the shares of the company in office,so that it has the dual status of the worker and the owner.Developed countries began to implement employee shareholding plan earlier,the research in this area is more mature.And China started late,is still in the process of active exploration.In June 2014,the SFC issued the "Guidance on the implementation of the employee shareholding plan of listed companies",which was welcomed by many listed companies,has launched its own employee shareholding plan,China's real sense of the employee shareholding plan began.Reasonable Employee shareholding Plan program can stimulate the staff's enthusiasm for work and creativity,and the long-term development strategy of the enterprise in concert,but also to retain and attract talent,improve the cohesion of the company,integration of resources to strengthen team cooperation,so as to improve the business performance of enterprises.Most of the domestic research is focused on employee shareholding schemes in the reform of mixed ownership in state-owned enterprises,but private enterprises are the main players in the existing employee shareholding schemes,and there is relatively little focus on their shareholding plans.This paper will use the historical experience research method,the event research method,the financial Index analysis method.Firstly,it introduces the basic concept and types of employee shareholding plan,and compares with the narrow sense of equity incentive to highlight the characteristics of employee shareholding plan.Then the optical optoelectronics industry leading enterprises Zhejiang Crystal Optoelectronics Company profile is described.The implementation steps of the three independent employee shareholding plan implemented by the company in a rolling period are combed in chronological order.This paper introduces in detail the specific contents of the employee shareholding plan,including the implementation principle,the incentive object,the stock source,the source of funds,the life span,the disposition of the rights and interests,and briefly presents the main characteristics of the employee shareholding plan.Secondly,from the external environment and internal Enterprise comprehensive analysis of the company to implement employee shareholding plan motivation.Finally,through the analysis of the financial performance,short-term market response,economic value added,ownership structure,human resources changes and the innovation ability of the enterprise before and after the implementation of the employee shareholding plan of Crystal Optoelectronics Company,the paper obtains whether the employee shareholding plan has a positive effect on the listed company.By analyzing the bright spots and shortcomings of the Employee shareholding Plan scheme,this paper summarizes and puts forward some reasonable suggestions.Hope to be able to implement the same type of employee shareholding plan for the company to provide some experience,is conducive to employee shareholding plan in the promotion and implementation of listed companies,has a certain practical significance and academic value.The research of this paper finds that: Zhejiang Crystal Optoelectronics Technology Co.,Ltd.as a leading enterprise in the optical optoelectronics industry,the representative of high-tech enterprises.Crystal Optoelectronics Employee shareholding plan in the design of the program,there are many bright spots.In addition to self-financing of employees,from the company's previous year's net profit to extract special incentive funds to supplement the source of employee shareholding funds.This non-leveraged employee shareholding program expands funding sources,helps diversify employee shareholding risks,and reflects the company's support and confidence in future development.From the analysis of stock sources,controlling shareholders give a portion of the stock free of charge without affecting their control status,convey the importance attached to the staff,attract employees to take shares,and help to reduce the agency cost of the enterprise.Crystal Optoelectronics Employee shareholding plan has higher returns,enriched the company's compensation and welfare system structure,played a role in the medium and long term incentive,so that employees participate in sharing the company's development results,conducive to retaining and attracting talent.The shortcomings of Crystal Photoelectric employee shareholding plan scheme are as evidenced by the low proportion of employee shareholding,the limited dispersion of corporate equity,and the limited effect on the improvement of corporate governance structure.Crystal Optoelectronics Employee shareholding plan is only a general presentation of outstanding performance of senior executives and core technology(business)backbone employees can participate in the plan,but the shareholding target needs to meet the performance standards are not detailed and specific.From the impact on the business performance of enterprises and other non-financial indicators,Crystal Optoelectronics employee shareholding plan significantly improved the company's performance,intuitive performance in the company's profitability enhancement.The release of the employee shareholding program sends good news,prompting stock yields to rise,increasing shareholder wealth and corporate value.So that enterprises formed a "base salary + Performance pay + medium-and long-term incentive" this more perfect compensation and welfare system,increase the income of employees who make greater contributions to enterprises,help the company to attract and retain talents,improve the quality of human capital and profitability.Employee shareholding plan to help the enterprise's innovation strategy,the Enterprise's R & amp;d investment and output have increased,the company's independent innovation ability has been improved.