Employee Stock Ownership Plan Design And Implementation Effect

The three-year reform of state-owned enterprises is a top-level design to promote the transformation and upgrading of state-owned enterprises.It can enhance the core competitiveness of state-owned enterprises and improve operational with effect,and is also an important measure to promote the high-quality development of state-owned enterprises.In the process of deepening the reform of state-owned enterprises,the employee stock ownership plan(ESOP),as an important part,can improve the medium and long-term incentive mechanism of the enterprise to enhance the vitality of the enterprise,thereby effectively improving the level of enterprise operation.Since the re-launch of the ESOP system in 2014,many state-owned enterprises have realized the important role of the ESOP in promoting the deepening of the reform of state-owned enterprises,and have implemented the ESOP to stimulate the enthusiasm of employees and improve the company’s internal governance level.Through the implementation of the ESOP,employees become shareholders of the company based on their status as workers,so that they have higher work enthusiasm,and pay more attention to the internal governance of the company,and take it as their responsibility to improve corporate performance.Therefore,it has certain theoretical value and practical significance to explore how to make good use of institutional arrangements such as ESOP to promote the improvement of corporate employee incentives,internal governance,and other mechanisms.Based on the summary of the research on the motivation,program design.This thesis firstly sorts out the relevant domestic and foreign literatures on ESOP,and takes the first ESOP launched by Wuliangye as an example to analyze the employee effects,financial performance,and internal control before and after Wuliangye’s implementation of the ESOP.Compare and analyze the levels,and finally put forward some optimization suggestions for the ESOP launched by Wuliangye.In the literature review part at home and abroad,this thesis finds that the current domestic researches on ESOP focus more on the motivation of enterprises to carry out ESOP and the improvement of financial performance brought about by them,and there are fewer studies on internal corporate governance indicators.In the case analysis part,this thesis firstly compares the ESOP schemes of Wuliangye Enterprise,Laobaigan Liquor Enterprise and Yanghe Co.,Ltd.,and then compares Wuliangye Enterprise with Laobaigan Liquor Enterprise that completed the ESOP in 2015 and enterprises that did not implement the ESOP.Kweichow Moutai Enterprises conducted a comparative analysis and came to the following conclusions:Wuliangye Enterprise’s ESOP has the characteristics of a narrow range of issuance objects,low issuance price,few qualifications,and a single source of funds;Wuliangye Enterprise is in the process of completing this ESOP.After the stock plan,the turnover rate of employees remained at a low level,and the composition of R&D personnel was relatively stable;the company’s per capita operating income and profit maintained an upward trend,and the company’s overall financial indicators were stable and improving,but it was not comparable to Kweichow Moutai,which did not implement an ESOP.There is still a certain gap between enterprises;the internal control index maintains a high level,which is higher than that of Kweichow Moutai enterprises.The implementation of the ESOP of Wuliangye Enterprise is conducive to motivating and restraining employees,and has a role in promoting the improvement of the company’s internal control level.However,the proportion of employees’ shareholding is low and the performance appraisal system is lacking.Wuliangye Enterprise’s shareholding structure has not been realized.With the ideal optimization effect,this ESOP can easily be regarded as a tool for apportioning benefits to some employees.After analyzing the case of Wuliangye,this thesis puts forward three optimization suggestions for the ESOP of Wuliangye enterprises.First,the stockholders should be more precise,and share subscription standards should be formulated to expand the coverage of the population.The second is to diversify the subscription funds,with employee compensation and self-raised funds as the main source of subscription funds,and a certain amount is withdrawn from the company’s net profit as incentives for participating in the ESOP.The third is to standardize the disposal of rights and interests,set up performance assessment,extend the duration of the plan,and improve the rules and regulations for the disposal of employees’ rights and interests.The study of this case is helpful for Chinese listed companies to rationally design plans according to the company’s particularity when preparing for the ESOP,so that the ESOP can better play the role of motivating employees,improving business performance,and optimizing the company’s internal governance.