Can Employee Stock Ownership Solve The Problem Of Brain Drain?

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The small cap of shoe and hat net introduces three announcements of senior executives leaving.

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In the increasingly fierce competition, the Limited by Share Ltd (hereinafter referred to as "noble bird") intends to retain talents through ESOP.

The company has been planning and implementing the first phase of the employee stock ownership plan (ESOP).

At the end of last year, there were three announcements of the resignation of executives.

In the announcement, you pointed out that the plan will entrust an asset management agency with a total amount of no more than 160 million yuan, and set up a priority share and a progressive share in the ratio of 1 to 1.

The source of funds for the scheme is the legitimate remuneration of employees and the self raised funds obtained by other means permitted by laws and administrative regulations.

The stock is derived from the two level market, and the total number of shares held by the plan does not exceed 10% of the total share capital of the company. The total number of shares corresponding to the shares of a single employee is not more than 1% of the total share capital of the company.

In fact, the problem of brain drain has become an urgent problem.

Since November last year, there have been three announcements of resignation of senior management.

In November 17, 2014, Jiao Wenjun, the independent director of the company, resigned; in January 4, 2015, deputy general manager Andy Chen resigned; in April 3rd, director and chief financial officer Cheng Lijun resigned.

A media quoted the source as saying that after the listing of the popular bird, no employee stock ownership plan resulted in a large number of operation headquarters staff leaving.

It involves the level of arrival at the director level, and the replacement of 3 managers in a market department.

In response to this, the bird has said that the turnover rate is normal.

Song Qinghui, a famous economist, said that it is obvious that ESOP is a measure to stabilize the army.

He believes executives leave,

Competition in the industry is increasingly fierce. Only through the golden handcuffs of shareholding will the core employees be firmly in their own hands.

Equity incentive is also effective in the West. It has always been regarded as an effective way to retain talent and enhance the overall performance and competitiveness of listed companies.

According to public information, employee stock ownership plan is a long-term performance reward plan that enables employees to hold the company's stock and options.

A total of 58 listed companies launched ESOP in June, and 21 listed companies have been promoted in a week in July.