Research On The Employee Stock Ownership Model Based On The Employee Interests Protection

The employee ownership system can make the owner of the enterprise share the ownership of the enterprise and the right of future income with the employee,which embodies the employee ownership.This system emerged in the United States in the 1950s.After many years of practice in developed countries,it has been proved that employee ownership plans have a major role in improving production efficiency.China’s employee ownership plan started relatively late,only in the 1990s began to implement the pilot system.After many years of exploration and development,China’s employee ownership plan has made some progress and achievements.The transformation of the employee shareholding system and the state-owned enterprise joint-stock system has appeared at almost the same time.The changes in the capital structure of the company have enabled employees to combine the two identities of the funders and laborers,and the employee’s initiative and participation consciousness have been strengthened.This has promoted the improvement of the management and management of the company.In another sense,although employees as funders own the equity of the company,in most cases they do not participate in daily production and operation,which is in line with the definition of small and medium-sized investors.Therefore,from the perspective of protecting the interests of small and medium-sized investors,the interests of employees ’equity are based on the maintenance of equity interests.It provides a new way of thinking for the more comprehensive protection of workers’interestsThis article selects two private enterprises that implement employee ownership system,one is successful and one is unsuccessful.Through positive and negative ratios,the reason for failure is analyzed,and the successful experience is summed up.The paper puts forward the suggestion of improving the employee holding pattern in order to protect the employee’s vital interests to a greater extent.Through the comparative analysis between the cases,this paper finds that there are some loopholes in the employee holding trust model,resulting in the situation that the management takes the employee’s equity as its own,and forms an insider control to harm the employee’s interests.Therefore,the article thinks that the details of the employee holding trust plan can be revised,and the behavior of management can be restrained by treating employee holding equity as a simple asset trust rather than relying on their voting rights.In addition,as a supplementary mechanism to the employee holding model,this paper proposes the form of institutional investor holding.In this form,employees can use the capital management advantages of institutional investors to diversify their investments,further reduce risks,and ensure that employees ’equity can obtain greater returns.In addition,using the ability and enthusiasm of institutional investors to participate in corporate governance,the company’s business activities and management activities are more effectively monitored,so as to protect the interests of employees to a greater extent.Reasonable and effective protection of the rights and interests of workers and staff,not only can promote the improvement of labor productivity of enterprises,but also has important significance for the stability of the equity structure of enterprises.