Research On The Incentive Effect And Optimization Of Venustech’s Employee Stock Ownership Plan

In recent years,with the increasingly active personnel flow and the intensifying market competition,domestic enterprises have gradually realized the importance of long-term incentives for employees,especially technology-based companies that rely on human capital and innovation capabilities to develop.Therefore,after the concept of long-term incentives was introduced into China in the last century,many technology-based listed and non-listed companies have invested in the practice of employee incentives.As a new form of long-term incentives,the employee stock ownership plan(ESOP)has been widely used in domestic enterprises with the introduction of a series of policies and guidance from relevant departments in 2014 after a short downturn.It is precisely because this form has been practiced in China for a short period of time,and it is still in the pilot and exploration stage.The effect of implementing ESOP by enterprises still needs to be verified through practice.Therefore,this thesis conducts a case study on a group of technology-based listed companies that have implemented the three-phase ESOP earlier—Venustech Group Inc.,in order to provide certain reference for other companies in the same industry that plan to implement ESOP.Based on the research status of domestic and foreign scholars in this field and the two-factor theory,principal-agent theory and human capital theory,this thesis adopts a variety of research methods such as semi-structured interview method,event research method and comparative analysis method to conduct a case study on the three-phase ESOP of Venustech.First,from the perspective of the industry,the current situation of ESOP of listed technology companies is sorted out,and the design status and common problems of ESOP in this industry are summarized.Subsequently,it analyzes the motivation,plan and process,the incentive mechanism for the incentive plan to take effect,and the cost and benefit of Venustech’s ESOP.On this basis,it uses a variety of research methods to analyze and evaluate the implementation effect from multiple angles.It is found that although Venustech’s current ESOP has produced positive effects,it has ineffective effects and insufficient long-term incentives in many aspects,and the incentive goals have not yet been fully achieved.Therefore,this thesis believes that the company’s ESOP has a certain space for optimization,so it proposes five optimization suggestions based on its existing problems.Therefore,this thesis believes that there are still some areas that need to be optimized,so it proposes five optimization suggestions based on its existing problems;Finally,the case analysis of the full text is summarized to draw the final conclusion,and puts forward some inspirations from the two levels of enterprise and policy supervision,hoping to help the wide application and healthy development of ESOP in China.