A Study on an Employee Stock Bonus and Stock Option Program used as an Enterprise Strategy

• Main Authors: Ching-Jang Feng, 馮清章
• Other Authors: Chyan Yang
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/52719106015482765239

碩士 === 國立交通大學 === 管理學院高階主管管理碩士學程 === 92 === The Taiwanese high-tech industry took the lead in implementing an "employee stock bonus" and successfully completed a special bonus system package for workers unique in Taiwan. Since the implementation of the system, it has directly or indirectly attracted many talented personnel and gave rise to a lot of technology upstarts. The beneficial results have further boosted the continued and rapid growth of Taiwan's high-tech industry. Thus, the "employee stock bonus" can be considered as one of the factors that contributed to the fast-paced development of Taiwan's high-tech industry. From 2001, Taiwan has started implementing another worker reward system called the "employee stock option" to complement the original "employee stock bonus." The respondent of this research is Taiwan's high-tech industry, particularly the electronics sector where case studies are sourced, to analyze the employee incentive business strategies of "employee stock bonus" and "employee stock option." The research investigates how these two types of reward systems manage to positively attract professionals and maximize profit for the company, employees, and stockholders. From the two systems, what are the effects of implementation and government rules on employee incentive? Does the employee bonus system dilute stockholder rights according to common opinion? This study further investigates the effect of government rules and taxation regarding Taiwan's recently implemented "employee stock option" on company managers who are disadvantaged with the system's implementation. In summary, the study thinks that the "employee stock bonus" and "employee stock option" implemented by Taiwan's high-tech electronics industry not only allowed companies to absorb many high-tech talent but also improved business competitive advantage, creating higher value and a lot of technology upstarts. Although the two systems are not the sole success factors for these companies, they are at least the primary drivers. Personnel are the most valuable asset of a company and with these two systems, both employee and company rights are mutually combined. As employees strive to create value, the company and stockholders also receive better feedback, and all three are in a win-win situation. This has also contributed to the success of Taiwan's high-tech industry business model.