First of all, several important issues need to be clarified when implementing the employee stock ownership plan:
1 Why do you want employee stock ownership? Purpose determines the rules and mechanisms of action. Employee stock ownership is generally divided into investment, incentive and welfare. Therefore, different shareholding schemes will be designed to achieve the goal.
2. Long-term equity hypothesis, employee stock ownership will change the ownership structure, and long-term equity hypothesis should be considered, including future listing plan; We should also consider the role of the shareholding ratio in employee motivation. For example, if the ratio is too small, it can't play an incentive role, and if the ratio is too large, the company will lose control.
4 Who will enter the shareholding plan: If the equity is too scattered, even or concentrated, it will be difficult to motivate and retain core talents.
4 Employee contribution mode/equity pricing: cash contribution or labor service contribution should fully consider the candidate employee's contribution ability and expectations. We should also consider the impact of stock pricing on the interests of employees and companies.
5 Definition of design and management rules of equity flow: If there are no forward-looking arrangements for management rules such as equity grant, equity flow and equity withdrawal, it will lead to follow-up problems, such as invalid incentives and constraints, equity outflow and high repurchase costs. Need to balance employee motivation and decision-making efficiency.
6 Cost tolerance: The implementation of employee stock ownership will generate long-term costs, which will increase labor costs and tax levels. It is generally suggested that enterprises with capital or resources as their main competitiveness do not need to implement the employee stock ownership plan, and enterprises with talents as the source of competition are suitable for implementing the employee stock ownership plan.
Benefits of employee stock ownership:
1 incentive: the employee stock ownership plan enables employees to have the dual roles of laborers and company owners, and can share the fruits of the company's development, which helps to improve employees' labor enthusiasm and enthusiasm;
2 risk sharing: through the employee stock ownership plan, workers and owners can share risks and benefits, tap the driving force of the company's internal growth, and improve the company's own cohesiveness and market competitiveness;
3. Optimize the company's organization: employees' participation in the employee stock ownership plan has changed the composition of the company's shareholders to a certain extent, and employees' participation as shareholders in the daily management of the company will promote the improvement of corporate governance;
4 Internal financing: Employees need to pay cash to buy shares of the company when they participate in the stock ownership plan, so they can achieve different levels of internal financing according to the size of the shares.
3. Employee stock ownership model
1 Personal direct shareholding.
2 set up a limited liability company as a shareholding platform
3 set up a limited partnership as a shareholding platform
4 follow Huawei's example: through employee stock ownership meeting. Employees only enjoy the right to share dividends, but have no right to buy or sell stocks, participate in decision-making or withdraw from the capital market.
The common ways of employee stock ownership are: setting up a limited partnership. The actual controller or concerted parties of the original enterprise are general partners, and others are limited partners.
To sum up: first of all, we must evaluate whether the employee stock ownership plan is conducive to the future development of the company; On this basis, we need to hire a professional team to discuss and formulate the employee stock ownership plan according to the actual situation of the company. Fully consider the long-term development and strategic arrangement of the enterprise. Finally, in the case of reasonable mechanism arrangement, choose a relatively low-cost way. After the employee's intention to hold shares is clear, a detailed implementation plan will be formulated.