Research On The Implementation And Effect Evaluation Of ESOP Of A Company Under The Background Of Mixed Ownership Reform

The Third Plenary Session of the 18 th CPC Central Committee in 2013 proposed to comprehensively deepen the reform,State-owned enterprises develop mixed ownership economy through diversification of property rights and employee ownership should be explored in the mixed ownership reform.Since the former ESOP has caused bad consequences such as damaging state-owned assets,it is of great importance to promote the mixed ownership reform of state-owned enterprises,optimize the ownership structure of enterprises and give full play to the incentive effect of ESOP according to the new policy guidance.In 2016,the State-owned Assets Supervision and Administration Commission of the State Council(SASAC)issued the Opinions on the Pilot Implementation of Employee Stock Ownership in State-owned Mixed Ownership Enterprises(SOES),which marked the removal of institutional obstacles at the central level.Mixed-ownership economy is an important form of implementation of the basic economic system.It helps state capital to enlarge its functions,maintain and increase its value,and enhance its competitiveness.Concurrently,it helps capital of all forms of ownership learn from each other,reinforce each other,and develop together.Mixed reform should adhere to incremental introduction and the interest binding.Through employee stock ownership,establishing and improving the long-term incentive and restraint mechanism.Employees and enterprises should share the fruits of reform and development to make a market competition risks sharing.Company A is A first-level subsidiary of one of the world’s top 500 central enterprises.It is also a mixed ownership reform company and one of the double hundred enterprises in the State-owned Assets Supervision and Administration Commission of the State Council.In this paper,Company A was selected to study the implementation and effect evaluation of the ESOP under the background of mixed ownership reform.The method of case study was adopted to discuss why ESOP was implemented,how to implement and how the implementation effect was.This paper is divided into six parts: the first part is the introduction which introduces the research background and significance,Literature Review,research objective and content,research methods and the innovation of this paper.In the third part,the author introduces the course of the state-owned enterprises and the purpose and function of the employee stock ownership plan.The fourth part introduces the motivation,basic principles,implementation process and content of the ESOP OF COMPANY A.The fifth part evaluates the financial effect and income effect of a company’s ESOP,and puts forward some suggestions.The sixth part summarizes the design and implementation of ESOP,in a company and looks forward to the future implementation,providing reference for other mixed ownership enterprises to implement ESOP.