Research On The Executive Stock Option

In the developed countries, Executive stock option (ESO) has been proved to be an effective incentive mechanism by the theory and practice, and has been widely used. Many listed companies have tried the ESO under the current condition; hence many disputes around the ESO arise. So if this new incentive mechanism is feasible in China and how to implement it becomes an important issue to be studied on.On the theory base of ESO, this thesis analyzed its action mechanism and confirmed its effectiveness, and then comparing the foreign experience with the current domestic conditions, the writer drew the conclusion that at present the ESO is feasible in China. After further probing into the domestic mainstream ESO model and emerging ESO model, the writer pointed out that in order to fully bring the ESO into play, we should make efforts in perfecting the external conditions and the design of the mechanism.