A Stimulation & Restriction System--The Executive Stock Option

This essay begins with the special conducts and goals of the managers and the shortcomings of the present income distribution regime, and the executive stock option (ESO) is then introduced. Experiments about the ECO implementation hi state enterprises are discussed and some revealed main problems are studied. Then using the practices from other countries for references and dealing with the specific circumstances in our country. The essay offers the design program of the ESO. In the final, the essay gives the conclusion: at the circumstances of the no-sound institutions, it is not sensible to apply the ESO mechanically. Also, some suggestions are presented.