Case Study On The Implementation Of ESOP By Yitoa Intelligent

The ESOP,as an incentive system for companies,allows employees to hold stocks,have partial ownership and management rights of the enterprise,become owners of the enterprise,participate in the sharing of benefits and business decisions of the company,and form a community of interests between employees and the company.It is of great significance for companies to strengthen talent reserves and improve performance.ESOP first appeared in the United States in the 1950 s and have since been widely used by listed companies in the United States.The ESOP was introduced into China in the1980 s,but its implementation was suspended due to insufficient experience and inadequate supervision.It was not until 2014 that the China Securities Regulatory Commission issued the "Guiding Opinions on the Pilot Implementation of ESOP by Listed Companies"(hereinafter referred to as the "Guiding Opinions"),marking the restart of the ESOP in China.A survey and study of the implementation results of ESOP in Chinese enterprises in recent years found that although some companies have achieved the expected goals of performance improvement and employee motivation,most companies have not achieved ideal implementation results,resulting in floating losses or even being forced to terminate the implementation of stock ownership plans midway.This is closely related to the defects in the design of ESOP and the lack of standardized management in the implementation process.This article selects cases of floating losses caused by ESOP for research,providing some reference for companies with poor implementation effects of ESOP to explore the reasons,and also providing countermeasures and suggestions for listed companies planning to carry out ESOP.This article takes Yitoa Intelligent as the research object and delves into the implementation process and effectiveness of the company’s two ESOP.Research has found that in terms of market response,the market effect of the two ESOP is not good;In terms of business performance,after implementing the ESOP,the company’s operating capacity has been improved,and the company’s asset liquidity has been strengthened.However,the company’s profitability,growth ability,and debt repayment ability have not been significantly improved;In terms of governance effectiveness,the overall quality of the company’s employees has improved,agency costs have decreased,but long-term effectiveness is insufficient.The company has not provided corresponding incentives for the management talents and business backbone of its subsidiaries;In terms of innovative behavior,during the implementation of the ESOP stage,the company did not form a stable R&D talent team,and the company’s investment in R&D was not as strong as that of companies in the same industry,which was not conducive to the improvement of its core competitiveness and the company’s long-term development.In summary,there is still a certain gap between the implementation effect of Yitoa Intelligent’s ESOP and expectations.Based on this,this article further analyzes the problems of the ESOP of Yitoa Intelligent from the perspectives of scheme design and implementation.The study found that the two phases of ESOP mainly include unreasonable setting of shareholding objects and their share allocation,increased leverage setting,short lock-in period and duration,no reserved shares set,improper timing of implementation,and failure of fund guarantors to timely replenish positions The management committee did not play a corresponding supervisory role in seven aspects.To address the above issues,seven countermeasures and suggestions are proposed: reasonable setting of shareholding targets and allocation of shareholding amounts,cautious implementation of financial leverage,reasonable extension of lockup period and duration,setting of certain reserved shares,reasonable selection of implementation timing of shareholding plans,cautious setting of fund guarantors,and improvement of internal and external governance mechanisms.