Research Of Executive Stock Option

Executive Stock Option (ESO) is an increasingly popular means of remuneration in developed countries.It can protect the investorsrofit and make the companies prosperous because it ties managers?responsibility and profit togegher.As everyone knows,our state-owned companies are short of managers?incentive systems .So we think we can make use of ESO to solve this problem.Thus,in this paper,we introduce the history and theory basis of ESO,analyse the two intrinsic schemes of ESO,study the practice of ESO plan and evaluate the effects objectively.Then,on the base of our companies ractice,we discuss the importance of ESO and the factors which are disadvantage to use ESO in our country.At the end of this paper,we give some suggestion.