Analysis On The Employee Stock Ownership Plans In Corporation

In the western world after World War II, with the initiation of social welfare policy, a system of employee stockholding began to develop, relying upon a comparative perfect stock company system, and by now, a relative complete system has formed. On the other hand, started rather late, the development of employee stockholding system in China took the first step as the stockholding system in government-owned enterprise started to reform. Highly recognized by the business world and theoreticians as soon as it appeared, the system showed potential for continuing growth. This rising system is a chance for further reformation of the economy and enterprise system in China, and it has unique effect for setting up an effective internal prompting and restricting mechanism, establishing a more reasonable distribution system, realizing multiple property rights as well as the reformation of enterprise property right system, binding employee long-term benefits to enterprise's long-term development, increasing employee welfare, and constructing the micro-foundation for the well running of businesses. However, due to lack of a unified law system, a exists of chaos of policies and regulations, comparative underdevelopment, self-contradictory nature of locals, and departmental policy supervision have created disadvantages for formulating criteria of practicing employee stockholding. Therefore, we need to sum up the practical experience of China's employee stockholding system, and make laws to regulate and perfect it. To study the employee stockholding system, we should at first understand homological concepts such as company autonomy, human capital, and labor right, analyze the relative perfect employee stockholding system in the economically developed countries of west Europe, north America, Asia and so on, and then summarize the problems by comparing with the employee stockholding system that our country now has. China's legislation for the employee stockholding system should be based upon homological concepts mentioned above. Comparing with other existing kinds of employee stockholding systems, the Meeting of Employee Stock Ownership is the best mode, Nonetheless, certainly there are problems in this system, which requires our further perfection.