Research On The Implementation Effect And Motivation Of Longsheng Technology ESOP

Employee stock ownership plan,as an internal incentive method to help the development of the enterprise,is a powerful means to balance the relationship between the company and its employees.In essence,the employee stock ownership plan is to give employees part of the company’s share subscription rights,so that employees can choose to hold part of the company’s shares,so that they can obtain the company’s stock income,stimulate the enthusiasm of employees holding shares,and help the company improve Competitiveness.In addition,the implementation of employee stock ownership plans by enterprises can also maintain the stability of the securities market to a certain extent and promote the orderly development of the securities market.For my country,the employee stock ownership plan is an imported product.It was introduced late,the relevant laws and regulations are not perfect,and the standards that can be referred to in the implementation process are still unclear.Therefore,in order to find a development path of employee stock ownership plan suitable for my country’s national conditions in practice,it is necessary to conduct more extensive research on the cases of Chinese listed companies implementing employee stock ownership plans.This thesis selects Wuxi Longsheng Technology Co.,Ltd.as the research object.After studying the relevant theories of the employee stock ownership plan,the whole process of Longsheng Technology’s employee stock ownership plan is carefully sorted out,and the company’s implementation of the employee stock ownership plan is analyzed in depth.The motivation for the plan,and the impact of the employee stock ownership plan was assessed.Specifically,firstly,this thesis introduces the research background and significance of employee stock ownership plans,and reviews the relevant research results;secondly,it briefly summarizes the relevant theories of employee stock ownership plans;thirdly,it briefly describes Longsheng Technology The company profile and shareholding structure of the company,and the plan of the employee stock ownership plan is described in detail;then,the motivation and effect of the implementation of the employee stock ownership plan of Longsheng Technology are analyzed.In terms of the implementation effect of Longsheng Technology’s employee stock ownership plan,the financial effects were analyzed from four aspects: profitability,operating ability,solvency,and growth ability.Non-financial effects are described.On this basis,the impact path of the implementation effect is analyzed;finally,this case is summarized and refined,and some inspirations are drawn,hoping to provide some reference and reference for companies implementing employee stock ownership plans in my country in the future.The research conclusions of this thesis are as follows: First,Longsheng Technology has achieved incentives for employees through the employee stock ownership plan;second,Longsheng Technology’s employee stock ownership plan has promoted the growth of performance and helped the further development of the enterprise;Third,Longsheng Technology’s implementation of the employee stock ownership plan has sent a positive signal to the market and enhanced investors’ confidence in the company’s development.In addition,through the analysis of this case,this thesis summarizes the following revelations that are conducive to the smooth implementation of employee stock ownership plans by other companies: First,enterprises can appropriately extend the lock-up period of employee stock ownership plans after comprehensively assessing the implementation risks.Second,the company needs to establish an employee stock ownership plan system suitable for the enterprise according to its industry characteristics and corporate characteristics;third,the employee stock ownership plan can be reasonably used to retain and attract high-end talents;fourth,the employee stock ownership plan The smooth implementation of the stock plan also needs the support and promotion of relevant policies.It is hoped that it can provide reference for other companies to successfully implement employee stock ownership plans,and help other listed companies to formulate more scientific and effective employee stock ownership plans.