The Incentive System Research Of Stock Options

Originated from 70s' in Century 20 in U.S, developed for 20 years, Stock Option system has been adopted by 89 percent of the companies in U.S currently. Stock options make up of 30 above of the income of the enterprise administrators, and in the last ten years, benefiting from stock option, administrators' income is improved 200 times, the contradiction of the delegation proxy is diminished. Now, Stock Option is a new concept in China, but domestic enterprises can imitate from western countries, apply the stock option system to the management of human resources.First, this article describes the background and basic theory of stock option. Second, analyzes how the Stock Option is used in America and what improvement to be achieved. Then, profiles the current status of domestic enterprises, the necessary condition and possibility to apply Stock Option incentive system in these enterprises. Last, the basic principle to implement a stock option incentive system in China is prompted, and a design of the system is discussed in detail.