Research On The Improvement Of Employee Stock Ownership Plan Of Long King

With the advent of the era of knowledge economy,human capital plays an increasingly important role in the process of enterprise value creation.Employee Stock Ownership Plan as an incentive mechanism and supervision mechanism,can link employees' interests with shareholders,and motivate employees to improve their performance.China's early ESOP due to lack of legal guidance produced a lot of problems.The SFC issued a "on the implementation of employee stock holdings of listed companies pilot guidance" in 2014 to regulate and guide employees' holdings of listed companies.Since then,many companies have launched ESOP,Long King is one of them.As a leader in the air pollution control industry,Long King has the premise of implementing the ESOP.This paper first summarizes the theoretical basis of ESOP,analyzes the possible impact of the plan on the enterprise from the theory,and then illustrates the key point of designing and implementing ESOP.In the analysis of the effectiveness of the employee's shareholding plan,we can know that the company's ESOP improves the short-term wealth of shareholders,but has no effect on corporate governance and long-term performance.Combined with the specific content of the shareholding plan,I found that the standard of participation in ESOP is unreasonable and the employee shareholding ratio is low.The ESOP of Long King is welfare trend and the management is not standardized.The employee holding plan system is more like the welfare system of the senior staff.Therefore,Long King needs to use the salary assessment system to determine the object of employee participation and proportion of shares in the plan,and they need to pay for the ESOP.In addition,the company needs to appropriately expand the proportion of employee holdings and standardize the management model of ESOP.The aim of this paper is to give some advice to improve the ESOP of Long King,in order to motivate employees and improve business performance.I also hope this paper can provide reference for employees' holdings of other companies.