Analysis Of The Motivation And Performance Of The Employee Stock Ownership Plan In Coatings Enterprises

Under the dual pressures of environmental protection and market competition,Chinese coating enterprises have increasingly strong demand for talents,leading companies to try their best to compete for talents.Among them,there is the use of employee stock ownership plans to retain and introduce talents;however,There are few researches on employee stock ownership plans of coating enterprises in China and lack of a unified logical framework.Therefore,based on the basic theory of employee stock ownership plan,the characteristics of human capital,the production characteristics of coating enterprises and the incentive mechanism,this paper constructs a logical framework for coating enterprises to implement employee stock ownership plan,coating enterprises can follow the logical framework of "human capital—salary—incentive—corporate performance—economic benefits".This article first analyzes the design elements of 3Trees’ employee stock ownership plan,including its sources of funds and stocks,participants,stock lock-up period,and duration,etc.On the one hand,Through the comparison of the differences in the employee stock ownership plans of 3Trees,it is found that,With the continuous advancement of the employee stock ownership plan,3Trees pays more attention to ordinary employees,and the actual controller promises to guarantee the benefits of employee stock ownership,which is also worth learning for other companies;On the other hand,the problem of single source of funds is still unsolved.Secondly,due to the complexity of the macro and micro environment in which the coating enterprises is located,this paper uses PEST analysis method to analyze the external macro environment and the internal environment of the company before the implementation of the ESOP,to judge the purpose of the company’s implementation of the ESOP,and points out that the main motivation is to improve the company’s salary system through the implementation of ESOP,to attract more talents to work for the company,and to make use of the incentive mechanism of ESOP to mobilize the enthusiasm of employees and improve the level of corporate governance.Of course,it is hoped that the employee stock ownership plan can improve the company’s operating performance,expand the company’s scale,seize market share,and enhance the company’s competitiveness in the market.Finally,this paper analyzes the effect from the aspects of agency cost,profitability and talent introduction,and draws a conclusion through the vertical comparison and horizontal comparison analysis with companies in the same industry that have not implemented the employee stock ownership plan,that is,3Trees The implementation of the employee stock ownership plan has achieved positive results.This paper also uses the wall score method to determine the overall operating performance of the company,Including the company’s operating indicators,such as profitability.In the process of analyzing the case of 3Trees,this article also found that the success of 3Trees’ s employee stock ownership plan is mainly because the company’s management attaches great importance to talents;the benefits of employee stock ownership have also improved the company’s salary.At the same time,the employee stock ownership plan has accelerated the company’s brand and cultural construction,and promoted the development of 3Trees in many aspects to achieve significant results.And for the shortcomings of the 3Trees’ Employee Stock Ownership Plan,optimization suggestions are put forward,that is,to broaden the sources of funding for employee stock ownership and strengthen the performance appraisal of employees who hold shares to improve the implementation effect of the employee stock ownership plan.Through the above case analysis,it is explained that the logical framework of "human capital—salary—incentive—corporate performance—economic benefits" can improve the company’s corporate performance at the micro level,and promote the survival of the fittest in the industry at the macro level.Certainly reasonable.Although from the various data of 3Trees’ s operation and management,the implementation of the employee stock ownership plan has a positive effect on the company’s development,but in the process of research and analysis,it is found that the development of the company’s ESOP,even the domestic ESOP,is not mature;in order to avoid corruption caused by the pan-welfare of the initial employee stock ownership plan in China,China needs to continue to improve the relevant laws and regulations system and policy preferential system.At the same time,Chinese coating companies or other companies Companies willing to implement an employee stock ownership plan need to pay attention to whether the proportion of equity allocation is reasonable,whether they have a suitable exit mechanism to prevent company employees from pursuing only personal interests,and we should also give some employees corresponding preferential loans.