Stock Option: A Long-term Form Of Motivating Enterprise Managers

In the previous motivation or even the present reform, the rewards and penalties and spiritual motivation for ordinary staff members in enterprises usually overemphasized while neglecting the theoretical research and practice of motivation for executives. Allowing for the owner of state enterprises, it's a very urgent task for us to set up an effective motivation mechanism for state enterprise managers. The form of motivation mainly includes salary, bonus and stock option provided for managers, three components of which function differently. The salary includes basic payment and insurance and the bonus embodies short-term benefits while stock of stock option reflects the long-term benefits of enterprises.Considering the present situation of stock option run in the USA and its test conducted in some selected advanced Provinces and Municipals and basing on the reality of Guizhou province, the present study adopted a Questionnaire the writer made to investigate 78 enterprises in order to master their present forms for motivating managers and to dig out concerning problems. By doing so, the process of motivating enterprise managers would be accelerated.