Research On Employee Stock Ownership Plan

As an incentive tool,ESOP plays a positive role in enhancing the centripetal force,improving the performance and improving the welfare system of the company.In June 2014,China Securities Regulatory Commission(CSRC)issued the guiding opinions on the pilot implementation of ESOP by listed companies,and listed companies in China began to implement ESOP in succession.The future rapid development of technology-based enterprises like Taiji depends on the internal research and development team and senior technical personnel.How to attract,retain and continuously motivate the internal key employees and fully mobilize the enthusiasm and creativity of employees has become a management problem to be solved urgently.This paper systematically reviews the relevant research results and theories of ESOP at home and abroad,and finds that there is a relatively lack of case studies on ESOP in China.In view of this,this paper takes the first employee stock ownership plan of Taiji as the case study object,combined with the internal and external motivation of its implementation,makes a detailed analysis on the design and implementation of the stock ownership plan,and compares the company's financial indicators before and after the implementation by means of self and industry comparison,It also demonstrates the implementation effect of ESOP from the aspects of company management and personal influence,and analyzes and evaluates the scheme.The results show that: after the implementation of ESOP,the financial performance of the company has been improved,the wealth effect of employees and shareholders has been positively reflected,and the innovation investment,talent attraction and employee performance have changed positively.The stock ownership plan has improved the enthusiasm of employees,achieved effective incentives and reduced the cost of principal-agent.At the same time,the ESOP of this case also has some shortcomings,such as short holding time,increasing leverage fluctuation,not setting performance evaluation indicators,and not implementing the shareholding authority in place.It is suggested to improve the scheme design from the aspects of extending the shareholding period,setting assessment indicators,giving the management authority,and establishing a sound incentive assessment system.In order to better promote the ESOP,it is suggested to speed up the improvement of laws and regulations at the policy level,continuously strengthen the supervision,and at the company level,it is suggested to clarify the shareholding objectives,implement continuous incentives,improve the governance structure,and improve the implementation effect of ESOP.