Research On The Incentive Pattern In Using Stock Option For Chinese Enterprise

Chinese enterprises have been pushing into the international market that ever since China officially enter the world Trade Organization in 2001. In the situation that the competition is increasingly fierce, how to effectively encourage the managers of the enterprise namely the senior management personnel, how the enterprise can improve its ability to face the challenge and then to increase the economic benefit of the enterprise are the difficult and urgent to be resolve problems facing to us. Based on the analysis of the problems of manager encouragement existed in state-owned enterprise or state-owned holding limited company this article puts forwards the reformed plan in order to change the present conditions and further improve its market competitive ability.This article beginning from the universally existed problem of lacking enough encouragement and control in state-owned enterprise or state-owned holding limited company suggests the fundamental cause of these problems is the fictionalizations of the primary tractor and the trusted agency relationship existed in state-owned enterprise or state-owned holding limited company. The stock option system is popular in western enterprises and is commonly used in the 500 tops enterprises in the world. This system can effectively encourage and limit the senior management personnel of the enterprise. In this paper the theoretical base, the operation mechanism and the application in foreign countries of this system are introduced. According to the problems existed in law, rules, and environment in our nation, and the misunderstanding and obstacle in stock option, this thesis study and designs the phantom stock option mould that is adept to China entrepreneurs in order to set the inner incentive mechanism for our enterprises to improve the incentive and control state for the senior management in corporation and to get more competitive power.