A Case Study Of Vanke’s “Employee Shares”

From the period of the joint-stock system restructuring to the present,the policy on employee stock ownership in our country has undergone many adjustments,and policy at different stages is significantly different.The design of employee shareholding schemes under the background of new economic development is still in progress.The specific rules in different periods for employee shareholding overlap.Some of them conflict with each other,and some complement each other.Many historical issues left by the old practice of employee shareholding have not been clarified,while new Employee Stock Ownership exploration and practice has further expanded the distance between specific rules and practice.Whether it is the historical issue of the “employee stock” or the new exploration and practice,corresponding experience can be found in Vanke.Vanke’s “employee shares” have varied from corporate shares and employee collective shares,internal employee shares to common shares,and its vehicles have varied from direct employee holdings,trade union committee,corporate share asset management center,and asset management plan.By studying the legal rules during the origin of Vanke’s various“employee shares” and analyzing the information,Vanke has formed two types of “employee shares”.One of them is the corporate shares and employee collective shares that are derived from corporate profits in the joint-stock system restructuring,which has the nature that can only be used for the expansion of reproduction and the collective welfare of all employees,and therefore become substandard share and exists as a historical issue.Another one is the share that are held by employees,including common shares derived from stock options and subscribed by Jinpeng Plan as a holding vehicle controlled by Ying’an Partnership.Through the study of the sources and changes of these two kinds of“employee shares”,the nature of their vehicles and the significance on corporate governance,we can find that whether it is facing the historical issue of “employee shares” or the exploration of employee shareholding,Vanke seeks as much legal space as possible to solve the historical issue with lack of specific rule,and meanwhile innovates employee incentives and vehicles to achieve its own governance goals.Revealing the institutional environment of the practice of employee stock ownership in different periods,exploring the nature of historical issue,and seeking legal space as much as possible in practice and innovation to correct the historical issue,is the important experience that Vanke’s “employee stock” practice provided.In addition to the introduction and conclusion,this article includes five chapters:Chapter 1 mainly sorts out the “employee shares” formed by Vanke in different periods,summarizes the characteristics of Vanke’s governance structure,and provides basis for the following discussion.Chapter 2 examines the source and nature of corporate shares and employee collective shares,explains their nature and content in accordance with specific rules,and initially explores their corporate governance impact.Chapter 3 discusses the source and nature of Vanke’s internal employee shares,the direct employee shareholding formed by Vanke’s equity incentive plan and its role in Vanke’s corporate governance.Chapter 4 discusses the nature of the trade union committee and Vanke’s corporate stock asset management center,and the impact of these shareholding vehicles on Vanke’s corporate governance.Chapter 5 discusses the three aspects of the formation of Vanke’s asset management plans as holding vehicles for employee stock ownership,the clarification of Vanke’s two asset management plans,the characteristics of these asset management plan and their significance on corporate governance.