Research On The Motivation And Effect Of Employee Stock Ownership Plan

At present,ESOP has become a hot issue in China's capital market,but some companies have not achieved good results after implementing ESOP.How to give full play to the unique advantages of ESOP has become an important issue.Based on the literature review at home and abroad,this paper studies the motivation and effect of Suning ESOP by case study.The results show that Suning's ESOP and the strategic transformation of the company form a positive and continuous interactive relationship,and the implementation effect is good.At the same time,in view of the selection of incentive objects and the sharp decline of the company's stock price,the paper puts forward suggestions to improve the problem that employees suffer a large loss,in order to provide experience reference for the promotion of ESOP in China.First,This paper reviews the research results of scholars at home and abroad,summarizes the implementation motivation,implementation effect,influencing factors of implementation effect and the development situation in China.Then,it introduces the principal-agent theory,human capital theory,two-factor economic theory and stakeholder theory.This paper first reviews the research results and theoretical basis of scholars at home and abroad,introduces the background and specific implementation of Suning's ESOP,and analyzes the implementation motivation and effect.The change of external environment,the decline of business and financial performance indicators and other factors prompted Suning to implement two strategic transformations.In order to support the company's two strategic transformations,Suning has implemented the three-phase employee stock ownership plan,and at the same time hopes to attract and motivate outstanding talents,improve the company's business and financial performance indicators,and improve market performance by delivering positive signals to the market.Then this paper analyzes the implementation effect of Suning's ESOP.Through the analysis,this paper comes to the conclusion that Suning's ESOP has a good effect: ESOP unifies the interests of the company and employees,improves the enthusiasm of excellent talents,successfully helps the company achieve strategic transformation,attracts and motivates excellent talents,and improves the company's operation,financial and market performance.At the same time,the success of the company's strategic transformation also enables employees to obtain more capital gains,and the two sides form a benign and continuous interaction relationship.But there are also some problems to be solved in the case: the number of incentive objects selected by Suning is small,some of the selection criteria are not clear,and the incentive objects of the second ESOP face large losses due to the sharp decline of the company's share price.In order to constantly improve the ESOP system and promote its popularization in China,this paper puts forward some pertinent suggestions for the problems in this case: generally,we should actively promote the ESOP system and closely contact with the company's transformation strategy;in detail,we should broaden and optimize the selection scope of incentive objects and consider the factors affecting the income of incentive objects,Only in this way can we give full play to the advantages of ESOP.