Case study of Stock Option Plan of American Companies in Taiwan
Dr. Kehluh Wang
|關鍵字:||股票選擇權;員工股票選擇權;員工股價認購權;員工分紅入股;Stock Option Plan;Employee Stock Option Plan (ESOP);Employee Stock Purchase Plan (ESPP)|
“Bonus dividend in stock” policy has been commonly used in Taiwan’s high-tech companies, and it has created a lot of high-tech millionaires for the past ten years. This incentive should have helped decreasing employee-floating rate. However, in fact, most companies’ situations are not so. The current "Bonus dividend in stock” policy relies on past result and seems can only motivate employee in short-term. In foreign countries, especially American high-tech companies, “stock option plan” is commonly used to incentive their employees and considers as part of payroll package. Company provides a range of stock options to her employees according to their performance, contribution, qualification and experience etc. On the other hand, employees must stay at company for certain period in order to receive whole stock option. The concept of Employee Stock Option (ESOP) drives employees looking forward and ties up the relationship to become investors. Its exercise price is usually lower than market price, so that employee could either get the net amount or keep as stock. This thesis will be presented by case study. It consists of three parts: Part-1 (chapter 3) mentions: 1.Execute Stock Option Plan in Taiwan, and its relevant regulations and laws. 2.Relevant financial, accounting, and taxation dealing ways. 3.Agency cost. 4.The strength and weakness of Stock Option Plan in Taiwan. Part –2 (chapter 4) includes: 1. Methods of “Bonus dividend in stock”. 2. Financial, accounting, and taxation execution methods. 3. The strength and weakness of “Bonus dividend in stock”. 4. Comparison of “Bonus dividend in stock” and “stock option plan “. Part-3 (chapter 5): Base on part-1 and part-2, we’ve interviewed five companies which have adopted “stock option plan”. Chpater5.1 to chapter5.5, the study of each company’s Stock Option Plan situation will be discussed. Chapter 5.7 and 5.8 mentions ESOP and ESPP. Chpater5.9 discuss the study of employee’s attitude to his/her company’s Stock Option Plan.