Research On Implementation Strategy And Consequences Of The State-owned Enterprise Fixed Increase Employee Stock Ownership Plan

The Third Plenary Session of the Eighteenth Central Committee of the Communist Party of China proposed that the implementation of the employee stock ownership plan can be an important way to reform the mixed ownership of state-owned enterprises.Since then,policies regarding employee stock ownership plans have been promulgated successively,and the development of employee stock ownership plans has entered a new chapter.State-owned enterprises,as the mainstay of the development of the national economy,play an indispensable role.Whether the employee stock ownership plan can really exert an incentive effect and improve the state-owned enterprises' operating conditions is receiving more and more attention.As a specific form of employee shareholding plan,the fixed-increasing employee shareholding plan refers to the company's acquisition of company shares required by the employee shareholding plan through a non-public issue.As of the end of 2019,197 fixed-increasing employee shareholding plans have been announced.The specific characteristics,implementation steps,implementation motivation,contract elements,and implementation effects of the fixed-income employee stock ownership plan are all the key issues discussed in this article.This article selects Ewushang Company A as a case company,first introduces the basic situation of the company,and then delves into the implementation background,motivation,timing,and economic consequences of the implementation of the incremental employee stock ownership plan.Through case studies,it is found that,first,the company chooses to launch an employee stock ownership plan when the industry is becoming increasingly fierce,the company's profitability is good,and the market generally underestimates the value of the company's stock.Second,the company chose to implement a fixed-increasing employee stock ownership plan out of the need for employee incentives,the original intention of reducing employee stock acquisition costs,and the need for refinancing.Third,the governance performance of the fixed-income employee shareholding plan performed well,with obvious short-term announcement effects and poor long-term market response,while improving the company's financial performance in many ways.Finally,combining the results of case analysis,this article summarizes the experience and deficiencies that should be taken into consideration in the design of the timing,pricing,and incentives of Ewushang A's incremental employee shareholding plan.This paper provides a practical reference for the employee salary management,equity governance,and operation management of China's state-owned enterprises under the background of mixed ownership reform through case-focused research,and provides inspiration and guidance for supervisors to conduct market supervision and improve supervision efficiency.