Study On Equity Incentive Plan For Employees Of Company A

As an indispensable part of China’s economy,state-owned enterprises have been criticized by economists for their low operating efficiency.Compared with the rapid development of private economy,it is not difficult to find that the ownership of enterprise property is the key to the problem.In the state of pure state-owned property rights,on the one hand,the government cannot go deep into many details of enterprise management,and on the other hand,there are no real direct beneficiaries of property rights in the enterprise.As a result,the management team selected by any means tends to just keep the current situation of the state-owned enterprise,and has no intention of making it truly strong.Given the government’s inability to expand its control over economic activity indefinitely,the most feasible solution to the problem is to redivide the company’s property rights and use employee equity incentives to allow management to own the property rights--a deeper unification of responsibilities that will motivate management teams to improve operating efficiency.This article will discuss A typical city state-owned enterprises-Beijing urban construction design and development group co.,LTD.(hereinafter referred to as A company)after the actual situation in research method and actual case analysis,report analysis methods to analyze the necessity of enterprise employee equity incentive and maneuverability,designed two sets of incentive schemes: corporate level of employee stock ownership plan and project level of equity incentive plan.As a traditional profit distribution solution,ESOP can solve the incentive problem of managers and technical personnel at the company level to some extent.At the same time,due to the particularity of the industry in which company A is located--the new construction mode endowed by the new era opens up the road of project equity incentive.The core of project level employee equity incentive plan is significant to adopt the PPP,BOT mode(or key)project project personnel,for virtual stock equity incentive arrangements based on project level,due to the incentive is focused on the specific business,and they have not trading and long-term incentive,the scheme can without changing the project under the premise of equity structure,core personnel designated orientation of project level of the whole project cycle incentive effect.In conclusion,the problem of employee equity incentive at the company level encountered by company A is common in the reform of state-owned enterprises.The study and solution will provide A good way for similar companies to improve their operating efficiency.At the same time,the employee equity incentive plan at the project level is also an innovative attempt to motivate the new construction mode project.