Stock Option Plan Of Hi-Tech Enterprises

The ownership organizing system of modern enterprises is the organizing innovation of economizing trade expenses, having the incomparable advantage over classical enterprise. However, the separation of ownership and operation in modern enterprise brings about the issue of agency. The dissymmetry of information resulted in the owner's incapability of supervising the operator. The departure of the utility function also makes the handlers probably sacrifice the shareholders' interests for the sake of their own. Consequently, the principal (owner of the enterprise) must give the agent (the operator) appropriate, effective and permanent stimulation to reduce the interests differences between them. Meanwhile, they should spend a certain amount of supervising costs to reduce and even restrict the agent's behaviors, which may depart from the principal's interests. Based on this, to establish and improve an incentive and constraint has become the urgent affairs of modern enterprises.Developing Hi-Tech industry is a basic policy, which Chinese government emphasizes through and through in a long term. The characteristics of Hi-Tech industry itself makes it decided that developing Hi-Tech industry must obey these characteristics. The most important characteristic of Hi-Tech industry is that human capital is the determinative factor to the Hi-Tech industry's development. So, in order to develop the Hi-Tech industry better and faster, we must go all out to bring into play human capital's action creatively, and create necessary organizing system and other social and cultural conditions.In the Hi-Tech industry, it's obvious that one kind of human capital differentiate the others. Aiming at human capital's characteristics of property right and structure, it's a very important condition to design a successful incentive system in order to improve all kinds of human capital's internal innovative factors.Stock option incentive system makes it possible that the operators enjoy the remains of the enterprise. This system makes the income of human capital becomes the function of the enterprise's profit. So, the utility function of principal and agenttend to be consistent, and decrease the agent cost effectively. This kind of incentive system also makes human capital work hard and achieve the equilibrium of double-win.This thesis analyzed the applicability of stock option plan in our country through discussing the theory of stock option incentive, based on comparing and using for reference the mature stock option plan, the model of emprise preference appraisal and human capital fixing a price, put forward the idea and method for designing the Hi-Tech industry stock option plan.At the same time of appraising and analyzing the practice of stock option in china, combining the background of corporative strypped-down and the writer's experience of project management in J institute, the thesis analyzed the realistic signification of stock option plan and the whole thought of solution design. Also, you will find a simple solution of stock option plan for J institute in this thesis.