Improvement Of The Futong Group’s Core Employee Stock Ownership Plan Scheme

In a competitive environment, talent has become an important resource among competing companies. Long-term incentive based on Employee Stock Ownership Plan(ESOP) However, the development of ESOP in China is not mature, many enterprises are facing difficulties in actual operation.Through analyzing existing ESOP of FT group deeply, the paper presents recommendations for improvement in the base of considering the company’s development, strategic goals and stimulus needs of existing shareholders. First, this paper introduces the definition of motivation, motivation theory, long-term incentives, equity incentives, as well as ESOP-related theoretical research. To fully understand the current situation of the company, then it analyzes the background, the group’s basic profile and the main contents of the existing ESOP, defines the core staff of FT group. Through executive interviews and questionnaires, the paper make a further analysis of ESOP’problems, empirical studies show that the program is difficult to match the stimulus needs of existing shareholders. Finally, related to problems existed in ESOP, and with relevant recommendations raised by the shareholders, based on the research results and incentive theory, this paper puts forward five improvement directions and specific measures and suggestions for the ESOP. This paper proposed a variety of refinement and improvement recommendations to help the company make better talent management, and promote its sustained development. Meanwhile, it also provides a reference to similar enterprise.