Employee Stock Ownership Study Of Resturctured Enterprises

With the separation of major and secondary industry of state-owned enterprises in China and the continuous in-depth restructuring of secondary industry, many state-owned enterprise assets are allocated away from the secondary industry, and a number of new joint-stock private enterprises are formed. According to the policy requirements, most of these enterprises have implemented the Employee Stock Ownership Plan. Employees became shareholders of financial compensation payments as a new venture capital from the state-owned enterprise employees into the private shareholders. The implementation of Employee Stock Ownership Plan ensured the smooth restructuring of state-owned enterprises, but the survivals after the reform of these enterprises have some fundamental changes in ownership structure, and will have other changes in many aspects, particularly in personnel employment system. As the old personnel system is deeply rooted, layers are still nominated by leaders, then discussed, decided and employed by HR departments.. Employee stock ownership, as a modern enterprise management and effective incentives, in the restructured enterprises did not play its roll., If the existing restructured enterprises can not effectively play the role of employee stock ownership incentives, the enterprises are still facing a serious test.In this paper, two-factor theory, labor, property rights theory and principal-agent theory are used for the analysis of employee stock options, and introduced domestic and foreign enterprises in the employee-owned practice in the area. In A's case, it describes the company's restructuring A before and after the reform of the basic information, as well as A stake in the company setting. Employees mainly from the A shares management institutions, equity distribution, subscription funds, the existing problem of A company's employee stock ownership were analyzed. By drawing on the western developed countries in the Employee Stock Ownership successful experience, and against the A's in the employee stock ownership system, the practical problems that exist and put forward a sound system of employee stock ownership a number of recommendations such as improving the company's corporate governance structure, establishing a rational equity allocation mechanisms, improving employee participation in corporate governance mechanisms and strengthening the building of enterprise culture.Employee Stock Ownership Plan in improving the corporate governance structure and the settlement of labor disputes has played a significant role in helping to re-adjust the income distribution system which are conducive to the interests of building a community of businesses and workers, cohesion enhancing, democratic governance enhancing. However, for our business use of employee ownership forms, methods are not able to form overnight, because of the economic environment and legal environment constraints, there are some issues in our employee stock ownership system in the implementation of the objective. Employee stock ownership system does not meet due effect. Though there are still many China's Employee Stock Ownership, the employee stock ownership has become a modern enterprise management system and employee participation in enterprise management has become a global trend. Therefore it is necessary to standardize and improve our employee stock ownership system so that employee stock ownership system can fully play the positive role.