Employee Stock Ownership Theoretical Analysis And System Design

In the keen competition, these are the questions that every enterprises should face up to : how to bring all the potentialities into full play? And how to create the highest profit at the lowest cost? Therefore, the Western countries, taking the United states as the representative, design the improving system to get democratized economy, Russia carries out the all-round reform for privatized economy, and China also insists on deepening the structural reform of the economy. While, all these reform plans, in the end, will focus on the employee stock holding.USA, Japan, Europe and other countries have already started their employee stock holding practicing. Relevant laws and regulation have been made. Despite of the differences on historical background and detailed measures these countries may have, employee stock holding has been generally deemed as an united effective way to enhance attraction of an enterprise, to promote profitability and to realize the fair efficiency.To discuss the theoretical basis of the Employee Stock Ownership System, this paper mainly pay attention to two aspects : first, take the Labor Capital as the basic point to exploit the essence of ESOS. Under the Knowledge economy, labor capital isbecoming more and more important in economical development and, together with asset capital, forms a base for an enterprise, while employees, as owner of labor capital of an enterprise, maintains a combination of future with the enterprise and forms an interest community with it. Second, analyze the economic value of ESOS by comparing the ESOS and the employees' ownership, employees' participation in Company's management.To reform the state-owned enterprises, China has carried out several kinds of so-called ESOS. But, decentralized employee stock holding in earlier times lacks effective regulation. It did not help to reach expected target and did not bring the results it should have brought either. So, decentralized employee stock holding has not formed the ESOS in true sense. On the basis of inspecting the Employee stock ownership system over the western countries and the around 20 years history of the employee stock ownership in China, in order to construct an ESOS which conform to the situation in our country and the historical trend of the time, this paper put forward the tentative plan for our ESOS in its content and the factors to put it into force.