A Case Study On The ESOP And Its Implementation Effect In Truchum

As the market-oriented competitionoriented competition,if the company wants to break through the siege in the future development,it should reduce the agency cost and establish a long-term incentive mechanism.ESOP is a solution,listed companies can according to the actual situation,so that employees legally obtain and hold their own shares for a long time.After about 40 years of exploration,the ESOP system of our country finally came into being in June 2014.By the end of 2020,a total of 719 listed companies had been implemented,and many companies had implemented periods.In addition,most of the enterprises implemented are private enterprises.In practice,although some companies have achieved good results,some companies have not solved the problem from the source.Therefore,this paper selects TRUCHUM,a private enterprise of the case.Starting with the implementation effect and action path of ESOP,it is not only helpful to enrich the theoretical research of ESOP in private enterprises,but also to provide reference for the design and implementation of ESOP in other listed companies.On the basis of defining the concept of ESOP and plan and the concept of implementation effect of diversified stock sources the related theory of employee stock ownership plan,this paper analyzes the action path of ESOP on the implementation effect.Through the method of case analysis,taking TRUCHUM as an example,the basic situation,implementation background and process are understood,and the implementation motivation,design elements and implementation effect are analyzed.Finally,this paper summarizes the successful experience of the ESOP of TRUCHUM and analyzes the shortcomings,and puts forward some general suggestions to the listed companies and relevant departments respectively.This paper holds that the motivation of the ESOP of TRUCHUM is divided into two aspects: the common motivation and the motivation of choosing the diversified stock source.The implementation effect,from the financial performance,non-financial performance,market response three aspects overall,achieved good results.Therefore,the corresponding enlightenment is obtained from the case.Only by summing up experience and drawing lessons can listed companies design more reasonable ESOP schemes and make them play a better effect on company value.In view of the above conclusions,this paper puts forward several universal suggestions to listed companies and relevant departments.Listed companies should expand the scope of ownership,select the appropriate source of stock and capital,build a long-term incentive system,and set up a reasonable grant mode and assessment standards.Relevant departments should promote the construction of a long-term incentive system,strengthen legal supervision and improve the information disclosure system.