| Summary: | 碩士 === 東吳大學 === 會計學系 === 91 === The Employees’ Bonus Stock System was based on the regulation as per Clause 235 and 240 of the Company Law where there was a surplus profit for the Company bonus of a certain percentage which would have to be distributed to the employees in accordance with the regulation of the Company Constitution while allocating profit sharing. When such bonus was given to the employees by means of stocks, it became the so-called “Employees’ Bonus Stock”. The purpose of legislation on this system was to compensate the hard working effort of the employees so their loyalties to the Company were intensified and further achieve the goal of equal wealth within People’s Livelihood.
The Employees’ Bonus Stock System was popularly used by domestic High-Tech Industries and excellent human resources were successfully attracted with this system. Mr. Chau Shing-cheng, chairman of UMC Group, had expressed that this system was one of three key competing elements for the Taiwanese IC Industry — it therefore showed how important this system was to the Electronics Industry. However, the media raised questions on such a good system for its difference with the Accounting process abroad. The reason held was that the Stock Options abroad, similar to our Employees’ Bonus Stock System for rewarding the employees, would be logged into Accounts as expense, where domestically we treat it as Surplus Profit. The result of this was under-estimated cost and over-estimated surplus profit. Furthermore, the distribution methods effecting the shareholders’ rights, namely high percentages of Employees’ Bonus, Cash dividend for Shareholders and Stocks for Employees, caused doubts to foreign organizations on our Accounting process and thus influenced their desire to invest.
Some argued that the Stock Option Certification System for Employees that has been executed domestically could replace the Employees’ Bonus Stock; but there were still differences between the two systems on the rewarding factor, the consistency with the shareholders’ right and the timing of reward. However, as long as suitable adjustment was done on the deviation of executing the Employees’ Bonus Stock System and the Accounting process, the two mentioned systems were still beneficial to exist and provide corporations with appropriate choices when needed.
This research therefore conferred deeper into the legislation purpose of Employees’ Bonus Stock System, the Accounting process, the deviation of execution and the differences when compared with Stock Options. The conclusion and suggestions would be drawn for the Government to conclude policies and for the Corporations as a reference when bringing such system into practice.
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