The Research On Employee Stock Ownership Scheme Of Y Rural Commercial Bank

Since the reform and establishment of rural credit cooperatives,rural commercial banks have continuously adapted to the market development and become an important part of China’s banking financial institution system.They play an irreplaceable role in supporting small agriculture and Rural Revitalization.At the same time,the incentive mechanism of rural commercial banks is not perfect,some employees are willing to "eat a big pot" and"free ride",and the phenomena of internal control failure,weak equity governance ability and shareholders’ illegal intervention in business decisions often lead to risks and cases.Taking Y Rural Commercial Bank as the case study object,under the background that the current regulatory authorities put forward"promoting bank insurance institutions to carry out employee stock ownership pilot in accordance with the law",this paper explores and studies the employee stock ownership scheme in line with the actual situation of Y Rural Commercial Bank through literature research,investigation and case analysis,and then discusses the long-term incentive of employees in modern rural commercial banks in the new era The feasibility of equity governance and deepening reform.Based on the current policy environment,the reform background of rural credit system and the development status of Y Rural Commercial Bank,this paper studies and designs an employee stock ownership scheme combining "entity equity+virtual equity" for Y Rural Commercial Bank.By giving full play to the dual role of employee stock ownership incentive and governance,it is expected to solve the problems faced by the bank to a certain extent,such as decentralization of equity,difficulty in exercising rights of minority shareholders,low satisfaction with the performance of shareholders’ meeting and incentive measures Imperfect incentive system and other problems.Entity equity employee stock ownership refers to that certain employees of Y Rural Commercial Bank obtain the shareholding qualification through conversion of the original shareholding mode,gift,internal transfer,self owned funds or deferred payment of salary purchase,and jointly establish Y Rural Commercial Bank employee stock ownership limited partnership as a limited partner(LP)with the labor union committee to indirectly hold the shares of this bank through the limited partnership.Virtual equity employee stock ownership means that the employees of Y Rural Commercial Bank do not directly or indirectly hold the actual shares of the bank.By granting a certain virtual share quota to the middle and senior managers and specific employees with outstanding performance of the bank,and on the premise that the bank reaches a certain business goal,the funds are withdrawn according to a fixed proportion of net profit to form a virtual equity capital pool,which is additionally distributed to the employees who complete the relevant assessment requirements.At the same time,this paper believes that Y Rural Commercial Bank may face obstacles in the process of implementing employee stock ownership,such as uncertain external environment,inadequate internal supervision,low voluntary participation and difficult to get the support of major shareholders,and puts forward targeted safeguard measures.