Talking about employee stock ownership plan

Talking about employee stock ownership plan Zhou Zhuoyang's employee stock ownership system means that employees of the company subscribe for part of the company's equity through investment purchase, loan purchase or dividend transfer, free distribution, etc., and entrust the employee shareholding management to be centralized; the employee stock ownership management committee acts as Corporate legal person enters the board of directors to participate in a new type of shareholding that shares dividends by share.
Establishing an employee stock ownership plan can enable employees to participate in the production management of the enterprise as both workers and owners, and to meet the financing needs of the enterprise, and to closely link the benefits of the enterprise with the personal interests, thereby maximizing the mobilization of employees. Work enthusiasm provides basic human factors for the long-term development of the company. For joint-stock commercial banks, the employee stock ownership plan is a financial product with broad market potential. The company's absorption of individual shares increases the development power, and at the same time changes the income structure of employees and reduces the occurrence of employees' income. Money expenditure; for individual employees, because they hold the company's shares and have the identity of the asset owner, the employees can also obtain capital gains when they get wages and monetary income through work, realizing the common development of individuals and enterprises. Yinchuan City Commercial Bank has issued internal employee stocks at the beginning of its establishment. Although most employees currently hold internal employee stocks, they do not form a meaningful employee stock ownership system. Therefore, in order to improve the corporate governance structure and strengthen the incentive and restraint mechanism, it is necessary to establish an employee stock ownership system. This time, our bank's capital increase and share expansion is a good opportunity to realize the employee stock ownership plan. Therefore, we should attach great importance to the development of this product, research and formulate employee stock ownership plans and operation plans, and realize the employees through capital increase and share expansion. Shareholding plan.
I. Employee shareholding range and shareholding quota The scope of Yinchuan City Commercial Bank employee shareholding should include the following personnel: First, the employees below the management level who have labor relations in the Bank; Second, all senior management personnel on the job; The third is the directors and supervisors of the Bank.
Due to the large welfare of employees, the employees who retire and retreat, the employees who die, are transferred, and dismissed; the temporary workers, the anti-employees, and other employees under abnormal circumstances should not be included in the scope of holding shares.
Shareholding of shares held by employees. The employee's shareholding qualification is determined by the board of directors, and non-bank employees may not participate in the internal employee shareholding in any way. Employees' shareholding scale According to the Bank's scale, operation and employee purchasing power, as well as relevant state regulations, it is determined that the total amount of employee shares accounts for about 35% of the Bank's total share capital. The employee shareholding amount should be determined by the score method to determine the amount of shares subscribed by the employee in combination with the employee's individual position, position, title, education, length of service, job performance and contribution. The individual shares of employees held before the establishment of the Bank shall be determined according to their voluntary principles whether they should be included in the quota, but in principle the amount of individual shares should not be lower than the prescribed amount.
For the proportion of equity set between senior management and general employees, the average employee can be freely subscribed, the middle management must be fully subscribed, and the senior management must hold a large number of shares. The shareholding of the chairman and the president is in principle 5-10 times the average share of the employees. For example, in Nanjing, the company's chairman and manager hold about 10 times the average share of the average employee. The senior management and business backbone of the company can increase the shareholding ratio according to the situation and appropriately improve the middle management, business and technical backbone. The shareholding limit encourages business and technical backbones to hold more shares. We can use the practice of Nanjing to let senior managers, business and technical backbones hold more shares, so that they can form a closer community of interests with enterprises, and form an effective incentive and restraint mechanism to promote the sustainable and stable development of the Bank.
Second, the source of employee stocks and sources of funds For joint-stock enterprises, the change of share capital must be approved by the relevant departments, approved by the shareholders meeting, and go through the relevant industrial and commercial registration procedures. Especially under the current laws and regulations in China, it is very difficult for individuals to directly transfer state shares and legal person shares. Therefore, when determining employee stock ownership, the source of shares should be determined according to the specific circumstances of the Bank. The use of capital increase and share expansion to issue individual shares is the preferred method of our bank's share of shares. How to solve the funding source of employee shares, in the actual operation can take a variety of forms of funding.
Option 1: The individual is out of the employee, the company takes a piece, and the bank lends a piece of money, so that the employee uses a costly fund, which is a source of funds shared by the company, employees and banks. Adopting this method not only solves the problem of insufficient funds for employees, but also effectively raises the concern of the employees who hold the shares, reduces the financing cost of the enterprise, and avoids the problem of all the funds advanced by the company, so it is able to The source of funding to meet the fundamental goal of employee shareholding.
Option 2: Reform the salary payment method, pay the employees according to the basic salary and employee shares, and deduct a part of the employee's salary as a shareholding investment every month, which can uniformly stipulate the deduction rate or the employee's custom deduction ratio.
Option 3: Loan to buy shares. As an investment in the employee's purchase of shares, and repay the loan with the income of the employee's shareholding each year. It can not only reduce the family's family economic pressure, but also buy the stock funds once in place, without the need for employees to take out family savings and financial assets.
Option 4: If ordinary employees have difficulty in purchasing with cash, they can combine the withholding part of the benefit salary and the employee shareholding to consider, and return the deducted salary to the branch that completes the annual task; All of the shares are subscribed to individual shares and divided into two parts, one part is awarded as an incentive to the employee who completed the task, and the other part is returned to the unfinished task, and the specific proportion is calculated according to the completion task.
Option 5: Allocate part of the net profit to the employees who hold the shares, quantify the salary and bonus balances to the employees, and allocate the accumulated public funds, welfare funds, incentive funds and other funds that are publicly accumulated by the employees to the employees according to regulations. This will help employees improve their work efficiency, reduce operating costs, and create more wealth for the company and itself.
Option 6: Repurchase social individual shares currently held by employees of the Bank.
Option 7: Assign employee shares in the form of benefits. The employee stock ownership plan is combined with the employee retirement plan and the pension plan. The employee stocks are transferred to the employees at a preferential price by the company, and are increasing year by year with the contribution of the individual to the company and the growth of the company's economic benefits. However, it cannot be honored within a certain period of time, nor does it guarantee to provide certain fixed income or welfare plans to employees. Instead, it links the employees' income with their stock investment and the development of the company, and accumulates the future of the employees. A variety of income sources, so that employees can get a considerable income after retirement, support the day, thus relieve the worries of employees after retirement, motivate employees to work hard for the company for a long time, attract and retain talents, increase the cohesiveness of the company.
Option 8: The value-added portion of the net assets is converted into a person who has made significant contributions to the share award. Intangible assets

Shareholding, the distribution of scientific and technological achievements, patents, proprietary technology and other value-for-money shares to contributing operators and technical backbones, can fully mobilize the enthusiasm of scientific and technological personnel, help to introduce scientific and technological achievements, and accelerate the company's technological progress.
Option 9: A certain percentage of the profit of the super plan is awarded to reward the operator. Through direct purchase of stocks, award of equity and dividends, and grant of share options, the individual income of the operator is combined with the long-term development of the company.
Option 10: Set up a post stock, take a part of the profit from the profit, and distribute it to the operator to reflect the value of the post. The ownership of the post shares is in the enterprise, and the income right belongs to the operator. Once the incumbent leaves the post, the post is returned to the company. Of course, the value of the post shares is not static, but with the quality of the business, high and low.
The above schemes have different characteristics. Depending on the specific circumstances of the enterprise, several fund-raising schemes can be selected at the same time. Such as a company subsidy, a piece of cash for employees, a deduction of wages, a loan to buy a piece, a reward for a comprehensive program.
Third, the establishment of employee stock ownership management staff shares of the Bank's shares, the employees' labor and capital have been organically combined, fully mobilized the enthusiasm of employees, so that employees use property rights as a link with other owners to form a community of interests, enhance Employees' concern for the long-term development of the company and the participation of management. However, if employees hold shares as natural persons, their share is small and scattered, and scattered minority shareholders have great difficulties in safeguarding their legitimate rights and interests and exercising shareholder rights. Therefore, it is necessary to centrally manage employee stock ownership through employee stock ownership. The employee stock ownership committee consists of employees within the company. The Employee Stock Ownership Committee is a major shareholder of the company's shareholder meeting. It is the management body of the company's internal stocks and participates in corporate decision-making on behalf of all shareholding employees.
The employee stock ownership association can work under the leadership of the trade union. The employee stock ownership will be the shareholder of the joint-stock company and share the same interests as other shareholders. If we set up an employee stock holding and have 10 million internal employee shares, the employee stock holding will become a relatively large shareholder, which is very beneficial to the long-term development of the bank. First of all, employee stock ownership represents the interests of shareholders, which plays a role that is difficult for small shareholders to share, and enhances employees' awareness and concern about the company. Second, they can elect representatives to enter the board of directors as large shareholders. The Board of Supervisors brings the opinions of employees to the operation and management of the company. Thirdly, in the case of increasing capital marketization, employees can resist the hostile takeovers of the company on behalf of employees, thereby safeguarding the fundamental interests of the company; Employee stock ownership will focus on escrowing employee stocks and conduct daily management of shares, which changes the slack management of employee stocks. Fifth, it provides financial resources for employees who have temporary difficulties in purchasing economically.
4. The senior management personnel of senior management personnel play a decisive role in the daily operation of the Bank. However, the current salary system of the Bank makes the income of these personnel seriously inconsistent with the responsibilities assumed and does not have an incentive mechanism at all. Therefore, it is more important in a certain sense to change the salary system of senior management personnel to meet the development requirements of enterprises.
Due to the special role of senior management in the development of the enterprise, the efficiency of the employee stock ownership plan depends on the success of the senior management shareholding mechanism. The purpose of implementing the shareholding is to enable the managers and enterprises to form a high-interest community of interests, strengthen the responsibility of the managers and concerns about the development of the enterprise, and standardize the behavior of the managers of the enterprises. First of all, in the share subscription, the enterprise manager has the minimum shareholding limit, so that the risks and benefits of the manager's business operation are also several times that of the average employee. This quantitative restriction not only ensures that the enterprise manager has sufficient voting rights, but also encourages the manager to use the voting rights with caution; secondly, unlike the general employee holdings, it can also stipulate that the managers hold the shares within their tenure and within two years after leaving the company. Not transferable. After leaving the company for two years, the manager will leave the audit after the employee shareholding, and the enterprise will buy back and transfer it to the successor. This effectively avoids the adverse effects that the manager's short-term behavior may bring to the company. Third, Managers are in the most important position of the company. They pour a large amount of special assets and bear the risk of business decision-making. They should receive corresponding compensation. In the income composition of managers, the proportion of reward income is large, so as to strengthen the benefit sharing mechanism between managers and enterprises. Finally, from the use of employee stocks, the implementation of employee rights and the realization of investment income are promoted. The material premise of the internal employee stock ownership system. After the funds raised by the employee stock holdings enter the company, they must exert the overall advantages of funds, continuously improve the overall efficiency, and protect the return of employee investment.
6. Clearly regulate the management of employee equity. First, strictly regulate the employee share transfer behavior in the employee stock ownership system. In the formulation of the internal employee stock ownership charter, the company shall clearly stipulate the disposition of the shares when the employee retirees or leaves the enterprise. The enterprise may repurchase according to certain standards and conditions, or may be transferred within the enterprise and purchased by new employees who meet certain conditions. Because employee shares have to enter the company's capital, they are not allowed to withdraw shares, and they are not allowed to go public or trade. They are only used as a basis for dividends. When employees retired or transferred or dismissed, employees die, retire, be dismissed, expelled, delisted, apply for resignation, and mobilize shares. At the time, the cash value per share is cashed out and must be transferred internally.
The relevant provisions of employee equity management involve the interests of shareholders. In China, in the interim measures or trial regulations concerning employee stock ownership in various provinces and cities, most of the employee shares are prohibited from being transferred. The acquisition of employee stocks usually receives the support of the state and enterprises in the purchase of funds. If the transfer is not restricted, it will not only lead to the disintegration of the employee stock ownership system, but also impact on the securities market and cause social problems. Therefore, in principle, the withdrawal, transfer and inheritance of employee shares should be prohibited. Only when employees retire, or leave the company due to death, resignation, resignation, delisting, etc., they are allowed to transfer to other employees according to law. The employee shares it actually holds, or the employees holding shares, will repurchase their actual employee shares within the statutory time limit.
Second, in the case of capital increase and share expansion, part of the equity should be reserved for the needs of future development for the new employees to be subscribed or allocated.
The third is to deal flexibly with employee share dividends. For dividends obtained from the use of bank loan employee equity, it should be used first to return the loan and loan, and the dividend can be given to the employee after the loan is paid off. Individuals who participate in the shareholding should be divided into two stages: First, in the early years, the dividend distribution should be paid in cash, directly to the employees, to alleviate the repayment pressure formed by the employees in the process of financing the purchase of shares. To reduce the burden on employees; second, we should gradually reduce the proportion of cash dividends, increase the proportion of dividends used, and encourage employees to pay dividends for reinvestment, so that the benefits of employees are more closely integrated with the long-term development of the company.
7. Strive to give full play to the supervisory role of the employee stock ownership system. After the employee holds the shareholding, the identity has duality. He is both a laborer and a shareholder. As a shareholder, the company's operating income is closely related to the employees' interests. Employee-to-business operations

Active supervision of behavior is based on self-interest, so this supervision is spontaneous and continuous, and does not require external incentives. As a laborer, he directly participates in the production and operation activities of the enterprise in different ways and at different levels. The company is well aware of the actual situation of the company's business performance and the leaders and management agencies at all levels. Therefore, it can promptly discover various violations of laws and regulations in the business operation, and quickly pass through its own representatives and report to the board of directors and the board of supervisors through legal procedures. Whether the board of directors or the board of supervisors corrects mistakes according to the law is also closely watched by employees. The bottom-up supervision of employees is characterized by direct, timely, in-depth, wide-ranging, multi-level and multi-angle, and its supervision is very effective. At the same time, employees will strengthen their own constraints and supervision. The overlap between employees and shareholder status has completely changed the values ​​of employees' traditional behavior. The quality of business operations is related to the efficiency of employees and to the immediate interests of employees. Therefore, employees become highly engaged in their work, consciously constrain themselves, make their words and deeds consistent with the business objectives of the company, and greatly improve the efficiency of supervision.
In short, through the shareholding of all employees, employees and the company form a community of interests, achieving risk sharing, responsibility sharing, benefit creation, and benefit sharing. Employees at different levels will consciously or unconsciously bring their own interests and interests of the company. Tightly tied together, the quality of business operations not only directly affects the wage income of employees, but also directly affects their dividend income. The relationship between enterprises and employees forms a “property-responsibility-interest” relationship, and employees feel that they are not only National and social labor is also working for oneself. Employees are more concerned about business management and property safety. They are more motivated and more caring for enterprises. They consciously contribute to and make more contributions to improving the economic efficiency of enterprises. In this way, the enthusiasm of employees' production labor is effectively mobilized, and the cohesiveness and centripetal force of the enterprise are enhanced.