Research On The Implementation Effect Of Employee Stock Ownership Plan In B Company

As a long-term incentive means,ESOP is used to motivate employees,improve enterprise performance,improve the company’s innovation ability,and is also a hybrid tool to optimize the ownership structure of state-owned enterprises.Since the implementation of ESOP in China during the reform and opening-up period in the last century,the implementation of ESOP has been stopped because of many problems.This paper takes B Company in paper industry as a case study to analyze the implementation of ESOP,which can not only supplement the research on Esop,but also provide reference for enterprises.This paper summarizes the research results of many scholars,based on the theory of ESOP,firstly analyzes the motivation of B Company to implement ESOP,then,the market effect of the implementation plan announcement is analyzed through the event research method,and then the financial performance of the company is analyzed according to various financial indicators,at the same time,this paper discusses the non-financial performance of the company from the following four aspects: the stability of the staff structure,the capability of R & D Innovation,the corporate governance structure and the staff income.Through the case analysis,it is found that the main motivation for B Company to implement esop is to establish a long-term incentive mechanism to attract talents and motivate employees so as to improve the business performance.The implementation of ESOP has improved the company’s financial performance,and the implementation of the plan has a strong effect on the company’s solvency,profitability and development capacity,and a relatively poor impact on the company’s operating capacity,the implementation of the shareholding plan has also brought about positive market effects in the short term.Further analysis shows that the implementation of esop makes the proportion of high-educated talents in the company continue to rise,at the same time,it also attracts a large number of R & D talents for the Enterprise,and the R & D output is better.ESOP also complements the internal supervision mechanism of the Enterprise,increased employee pay,but there is still room to increase participation in employee earnings.Through the analysis of the implementation effect of employee stock ownership in B Company,the following optimization suggestions are put forward: In order to avoid the short-term effect,the company should implement the long-term stable stock ownership plan,design the appropriate stock ownership proportion,and incline to the core employees appropriately,at the same time,reduce the risk of staff participation,pay attention to the participation of staff income,and establish a matching assessment system,to avoid plans reduced to welfare measures.