Research Of Applied Stock Option Incentive System Resolution

Applied stock option is an incentive plan for employee, especially for manager at high position. It also is the most extensive and effective extended incentive model. It has a very important meaning for Chinese enterprises to improve the situation of management, change the frame of ownership, consummate the structure of corporation. So, systemic investigation of stock option's application from the aspect of enterprise is necessary.This paper introduce the validity elements of applied stock option in the first, then expound the validity application of different stock option incentive project aiming at manager and employee, furthermore testify the validity and value of stock option through mathematics model. At last, there are some conclusion and advice.-----stock option is very popular and have powerful improvements in the US.Chinese enterprise should import stock option incentive system selective. Stock option encouragement system can offset the situation of deficiency and improve the competition.-----paper devises different stock option incentive model for manager andemployee, and gives the practical resolution for enterprise.----- mathematics model in paper testifies the validity of stock option andestablishes bintree model and renewed Black-Scholes model.-----paper gets a resolution under the basic of synthetically analyse.This paper is not perfect because the collection of original data is too hard and there are few enterprises in China carrying stock option incentive system. Author gets the resolution through a lots of reference books and cases, at the same time, there are also some math instruments as statistics. The innovation of paper are below.-----forming a systemic stock option incentive theory and practical guidancesystem.-----investigating the validity and value confirmation of stock option byquantitative methods.To sum up, stock option is an effective extended incentive means. It has a very important significance for Chinese enterprises to reform or establish powerful salary and reward system and enhance management efficiency. So, application of stock option in a creative way to incent is very essential.