Stock Option And Incentive Mechanism Of Public Corporations

As an efficient long梩erm incentive mechanism, stock option compensation plans prevail in west enterprises. The plans have been applied to some corporation of our country for one or more years. In this paper I try to explore that under our country抯 actual condition whether publicly corporation can introduced this mechanism, and how to design several important aspects. This paper falls into four parts as followed: Part one: To definitude stock option抯 concept, characteristic, type, development descriptions, derivative productions. Part two: To demonstrate the theory and effect of stock option, explain the conclusions of empirical test, list localization of stock option. Part three: To analysis the need and conditionds of publicly listed company using stock option plans. To summarize the status those how our courtry抯 enterprises perform this mechanism, To provide some suggestion on policy lastly. Part four: To put forward some suggestions on how the public corporations design the executice stock option plans.