Employee stock ownership plan, also known as employee stock ownership system, is a realization form of employee stock ownership and an institutional arrangement for enterprise owners and employees to share enterprise ownership and future income rights. Employees own part of the property rights of the enterprise and obtain the corresponding management rights by purchasing part of the shares (or shares) of the enterprise. The purpose of implementing employee stock ownership plan is to make employees become shareholders of the company.
Employee stock ownership plan is a new form of equity. Employees within an enterprise subscribe for part or all of the company's equity, and entrust the ESOP Association (or a third party, usually a financial institution) as a legal person institution for custody and centralized management and operation. As a legal entity, the Employee Stock Ownership Management Committee (or Council) enters the board of directors and participates in voting and dividends. There are two kinds: (1) employees own part of the property rights of the enterprise by purchasing part of the shares of the enterprise and obtain the corresponding management rights; (2) employees buy all the shares of the enterprise and own all the property rights of the enterprise, so that their employees have complete management and voting rights over the enterprise.
ESOP (Employee Stock Ownership Plans) is an employee stock ownership plan, also known as employee stock ownership system, which is a realization form of employee stock ownership and an institutional arrangement for enterprise owners and employees to share enterprise ownership and future income rights. Employees own part of the property rights of the enterprise and obtain the corresponding management rights by purchasing part of the shares (or shares) of the enterprise. The purpose of implementing employee stock ownership plan is to make employees become shareholders of the company.
Generally speaking, employee stock ownership plans can be divided into two categories: non-leveraged employee stock ownership plans and leveraged employee stock ownership plans.
The main functions of employee stock ownership plan are: to lay the foundation for democratic management of enterprises; Expand the source of funds and increase the income of employees; Retain talents and provide protection for employees; Adjust the income right of enterprises and change the restraint mechanism of enterprises.
Implementation steps:
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.