1. Employees have the dual identities of workers and shareholders, which unifies the interests of employees and the interests of the company. Through the employee stock ownership plan, workers and owners can share risks, enjoy benefits, tap the driving force of the company's internal growth, and improve the company's own cohesion and market competitiveness.
2. It helps to optimize the company's shareholding structure. Employees participate in the employee stock ownership plan to obtain shares of the company, which changes the composition of shareholders of listed companies to some extent. Employees' participation in the daily management of the company as shareholders will promote the improvement of corporate governance.
3. It is an effective way for enterprises to raise funds and expand.
4. It provides an internal trading market for stocks of non-public holding companies.
5. Prevent hostile takeover.
6. Provide security for employees' retirement instead of pension.
7. Realizing the transfer of company ownership to employees, the company can give up and transfer its subsidiaries with unsatisfactory operation smoothly.
Second, the shortcomings of the employee stock ownership plan:
1. When the overall business situation of the enterprise is not good, employees will lose interest in the employee stock ownership plan.
2. The dual identity of employees may also lead to their negative impact on enterprise management decisions.
3. Compared with the shareholders outside the company, the shareholders inside the company are more likely to get the information of enterprise development. Information asymmetry between external shareholders and internal shareholders of a company easily leads to equity inequality between internal shareholders and external shareholders.
4. Employee stock ownership plan is not conducive to the introduction of foreign talents.
5. Employee stock ownership plan increases the management cost of the company to employees to a certain extent.
Extended data:
The specific implementation steps of the employee stock ownership plan are as follows:
1. Establish an employee stock ownership meeting to manage the contribution of employee shareholders in a unified way.
2. Clarify the functions and powers of ESOP, and standardize the organization and behavior of ESOP.
3. The design of employee stock ownership plan. The contents include: the scope and number of beneficiaries, mainly to determine the qualifications of shareholding employees; The control of the total amount of employee stock ownership and the distribution of employee stock ownership; Custody of employee stock; Sell employee stock.
For example, an enterprise was originally a first-class state-owned enterprise directly under the city. Since August 1995, it has become a joint-stock pilot enterprise. At the time of restructuring, there were 80 full-time employees, accounting for about 6 million yuan of share capital according to the shareholding ratio.
In the distribution of equity, enterprises adopt the principle of "giving priority to efficiency and giving consideration to fairness". The shareholding ratio of management decision-makers and senior managers can be three to four times that of ordinary employees, and the shareholding ratio of employees is determined according to their positions and responsibilities.
Baidu Encyclopedia-Employee Stock Ownership Plan