esop means the company's employee stock ownership plan.

It refers to the situation where internal employees of an enterprise contribute capital to subscribe for part of the enterprise's equity, entrust special institutions (such as employee stock ownership associations, trust funds, etc.) to operate as corporate legal persons, centralize management, participate in board management, and distribute dividends on a per-share basis.

The employee stock ownership system is a shareholding system in which employees own the property rights of the enterprise.

Non-leveraged employee stock ownership plan refers to the process of implementing an employee stock ownership plan, which does not rely on the support of external funds, and is mainly solved through stock dividends or a combination of stock dividends and fund purchases.

A leveraged employee stock ownership plan (LESOP) is typically financed by a company from a commercial bank or other financial institution, using the shares purchased by the LESOP as collateral.

Proceeds are used to purchase stock.

Only when LESOP regularly uses funds donated by the company to repay the principal and interest, can this part of the shares be gradually transferred to the employees' private accounts in proportion.

Operation process 1. Conduct a feasibility study on the implementation of the employee stock ownership plan, which involves the degree of policy permission; evaluation of the company's expected incentive effects; financial plan; unification of shareholders' wishes, etc.

2. Conduct a comprehensive value assessment of the enterprise: The employee stock ownership plan involves changes in ownership, so a reasonable and fair value assessment is very necessary for both employees and the enterprise of the plan.

If the value of a company is overvalued, employees will obviously not be willing to buy it; while if the value of a company is undervalued, it will harm the interests of company owners, which in our country is mainly reflected in the loss of state-owned assets.

3. Hire professional consulting agencies to participate in the formulation of the plan: Due to the long-term lack of comprehensive capabilities to operate under a sound market mechanism, Chinese enterprises lack some operating capabilities other than product management.

Especially for such a project that requires comprehensive technology, involves multiple departments and complex relationship definitions, it is necessary to hire a consulting agency with rich professional experience and knowledge and talent advantages to participate.

4. Determine the share and distribution ratio of employee stockholdings: Across the country, due to the special attributes of state-owned enterprises, the fruits of labor accumulated by employees of the enterprise while working for the enterprise have not been realized. Therefore, when determining the proportion of employees’ contributions to the enterprise,

Received compensation shares.

In addition, the proportion of employee stock ownership must be consistent with the motivation of the plan, so that it can motivate employees without harming the interests of the original owners of the company.