The model of the employee stock ownership plan, is the employee stock ownership plan good?

The eyelids are fighting, it's really 8592

No, capitalists will always be capitalists, they eat meat, you drink soup, they eat meat, we eat bones.

Favorable aspects of employee stock ownership:

Employee stock ownership was once considered one of the important means to mobilize employee enthusiasm and enhance investor confidence in the company. First, the employees of the enterprise pay money to buy the shares repurchased by the company at a low price, or the listed company will issue additional shares to the employees at a low price to ensure that the employee stock ownership plan can be profitable.

Second, the listed company pays to buy the company's **, and then distributes it to the company's employees in the form of benefits. Either way, the incremental funds that can be brought to ** are limited. Especially for the former, it will either form a hedge with the repurchase benefits of listed companies, or bring incremental funds and synchronize expansion.

Disadvantages of Employee Stock Ownership:

In order to encourage employee stock ownership, some companies have even made a promise of "making no profits, not losing", and once there is a loss in employee stock ownership, the major shareholders will compensate the employees for the losses, and some even make higher returns. In such a situation, many employees who did not want to hold shares or could not afford to hold shares also tried to raise funds to participate in employee stock ownership, and most of them suffered floating losses.

In the actual situation of the enterprise, the major shareholders are also heavily indebted, and the funds are very tight, and they are unable to hold them accountable for the original commitments. Employee stock ownership has become a difficult problem in the current market, which will not only bring economic losses to employees and affect the enthusiasm of employees, but also seriously affect the market image of enterprises, so that investors have a sense of distrust in the prospects of enterprises, thus forming a vicious circle.

I learned about the reform of state-owned enterprises on the official website of CUHK Consulting, and learned that the employee stock ownership plan is a new form of WIPO, which refers to a set of enterprise management systems in which the company grants all or part of the shares of the company's employees, including the personnel of the enterprise, in some form (including paid or unpaid) to help the employees of the enterprise hold the company** and let the employees participate in corporate governance on this basis. Under this system, employees (ordinary employees and managers) are not only the owners of laborers, human capital, but also the owners of property, and form a community of interests with the enterprise through the dual combination of labor and capital.

A new form of equity is a way to excite the lack of incentives, in which the internal employees of the enterprise contribute capital to subscribe for part or all of the company's equity, and entrust the employee stock ownership association (or a third party, generally a financial institution) to operate as a corporate legal person for trusteeship and centralized management, and the employee stock ownership management committee (or council) enters the board of directors as a corporate legal person to participate in voting and dividends. In this way, employee stock ownership plans can help companies attract and retain talent.

The first role, the employee stock ownership plan, is to combine the interests of the enterprise and employees to achieve the unity of the company's and employees' personal goals.

Extended Materials: Advantages and Disadvantages of Employee Stock Ownership Plans:

1. This long-term incentive model, i.e., the employee stock ownership plan, coupled with short-term methods such as changing the incentive and annual salary system, constitutes a material incentive system for employees and managers.

Mobilizing employee shareholder awareness can be a long-term motivator. At this point, it shares equity incentives.

of the general value. Through employee stock ownership, employees not only gain benefits and share in the value-added benefits of the enterprise, but more importantly, they gain shareholder status, which inspires employees to become shareholders and potentially allows employees to work as shareholders. Ability to retain top talent.

2. Employee stock ownership also has some negative effects. When a public company implements an employee stock ownership plan, it is bound to be removed from the secondary market.

Buy back some** and distribute them to employees as incentives and rewards. This will bring incremental capital to the market in the short term, but it will not increase the productivity of employees in the long term, nor will it improve the corporate governance structure.

3. The more outstanding talents, the greater the share of equity in the enterprise. When the value of the enterprise continues to increase, the "shareholding" event will expand the imagination space of outstanding talents in equity interests. Provide democratic management for enterprises and equity **. After the employee stock ownership, he will be introduced.

Introducing the ** Exchange.

It may be of interest to increase the understanding of the company's financial economy.

4. Equity incentive changes the employee's single employee status and becomes a shareholder of the company. Once the employee changes jobs or is dismissed, a labor dispute arises.

The situation will become complicated because, in addition to labor disputes, disputes over the right to share shares between companies and employees will inevitably arise.

1. Employee Stock Ownership Plan (ESOP) refers to a long-term performance incentive plan that allows employees to hold the company's ** and options. In practice, an employee stock ownership plan is usually funded by internal employees to subscribe for part of the company's equity, and the employee stock ownership committee is entrusted to manage and operate, and the employee stock ownership committee enters the board of directors on behalf of the shareholding employees to participate in voting and dividends.

2. Employee stock ownership is mainly for equity incentives, linking the company's performance with employees' income, retaining core employees, and enabling the company to achieve better development!