Discussion and application of employee stock rewards instruments

• Main Authors: Hao-Hsuan Cheng, 鄭皓軒
• Other Authors: Wen-Yeu Wang
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/41320012527418403671

碩士 === 國立臺灣大學 === 法律學研究所 === 102 === Under the fierce international competition, “Human resource” is the core issue of modern enterprises during their development, which can be discussed from the aspects of “recruit”, “training”, “use of talents” and “retention”. My topic involves in “use of talents” and “retention”. When reading the international news, we may note so many talented people of companies are poached by their oppositions every day that companies should think about how to retain talented people and how to reward them. Due to the fierce of modern competition, employees would not be satisfied with traditional compensation, so various kinds of rewards have been discussed and noticed. My topic will study on personal stock rewards. Under current law system, we have already had the preemptive right, treasury stock, profit-sharing plans, employee stock option and restricted stock, each of which has its own functions and features. Companies should consider their respective condition and employees’ requirements to make a sound and perfect rewards policy. The typical stock reward is stock option, the feature of which is to give employees an incentive to encourage them to work hard in ways that will boost the company''s stock price. If the company''s stock market price rises above the call price, the employee could exercise the option, pay the exercise price and would be issued with ordinary shares of the company. Restricted stock is also used commonly. It can set every kind of conditions to incent employees. Restricted stock was passed by Legislative Yuan in Taiwan in 2011, but there are still something we can improve. Employee stock ownership plan is also very popular, it can make most of employees become shareholders and adequately combine the benefits of employees and companies. I would recommend that Taiwan legislate it to enhance competitiveness of companies.