The Study Of The Incentive Of Executive Stock Option System

Since the 80's 20lh century, the long-term prompting mechanisms such as remarkable mechanism of stock option system have been widely carried out in many developed countries such as U.S.A. However, till how in China, such prompting system for the executive group is still a weak link. Now China is acceded to WTO and with the establishrnend of the socialism market-economy system, the traditional wage and rewarding system in must be reformed. By implement of prompting mechanism such as stock option system, both benefits of the executives and the enterprises can be jointed even more closely, and the activity and creativity of the executive group will be impelled fully, so that both of the enterprise owners and executive group will gain the best benefits and max.wealth.The stock option system is a kind of prompting system originated from the U.S.A in the 50's 20th century,which is a long-term prompting system at to resolve the conflict between the ''entrust" and "deputy" to balance the relation between the remuneration and the outstanding achievement, the responsibility and risk, it is one of efficient prompting system in the western enterprises.The stock option system manages to transform the person's pursuing for his individual benefits to that for the maximization of the enterprises' business value and long-period develops to cause the managing group stress on not only the enterprise.The stock option system unifies the both benefits of the managing group and the owner of the enterprises.The main function of the stock option system lies on that it effectively resolves the issue of the long-term prompting to the managing group, so that they can undertake the business risk of the enterprise altogether, and the excellent talentedpersons can be drawn continuously and steadily, it may also cut down the direct prompting cost ,the corportion can realize the really prompting action to the managing group without directly paying the capital.As an innovation form of enterise internal distributing system, the stock option system is an inevitable outcome during the course of the reform of the enterprise property rights in our country. However, seen from the practice of the system's implementation, there still remains some interior and exterior restriction elements, from outside such as the statue laws and regulations capital market, managing personal market and community viewpoint and so on; from inside such as the enterprise administration, the value defying of the stock option and the evaluation of the outstanding achievement etc.To establish the scientific stock option system, we should follow the principle of market-control, standardization , legalization and the internationalization, and carry out the system intently according to the practice in our innovation, to possess in focus, step by step and systematically.this paper also bring forward some advices to solve these problems such as the employees who can be the recipient, the resources of the stock, the optimal exercise prices for the stock and performance standards and so on.