Research On The Design Of ESO Plan In Our Country

Stock option presenting itself firstly in 70's of USA is a long incentive plan which aims at solving Proxy-Agency contradiction. It mainly makes executives have certain retained claim-right and assume corresponding risk. Because it is mostly assigned to advanced managers and technical backbones, it is also named as "ESO". Since 90's, there is no doubt that ESO plays a great role in production increase , technique innovation, stock market prosperity in USA. However, since financial false cases occur in Enron, World telecom companies and so on, ESO is regarded as a source of false cases. Our ESO is being implemented in starting period, facing the change, we wonder if our ESO should go on, and especially, how to continue? This article really centers on this question.This dissertation is divided into five chapters:The first part mainly introduces the notion of ESO, the basis of ESO and its implement effect. This part lets readers have a whole impression of ESO, which helps to understanding the following parts better.The second chapter, firstly, wholly elaborates the successful experience of ESO, including main points of manipulations accounting methods design and administration of ESO plan. As everything has two faces, the following segment points out ESO's shortcomings, such as lacking of relevance between ESO income and company's achievement, ignoring and deviating shareholder's benefit, possibly concealing the truth of profit, shorting the manager's action, producing new moral hazard and increasing income gap. This shortcomings have a certain reference significance in designing our ESO. Corporation leaders and even the USA president begin to rethink ESO. In two last years, American government has taken several reforming measures to avoid the problem. Two big measures are the issuance of <<2002Sarbanes-Oxley> and the advent of SFAS148 standard.The third chapter takes to analyzing the current practices of our ESO, and emphatically points out the potential problems and the reason of the above problems. This part reflects our reality of ESO. Finishing the part, we can know the fact that there are many mechanism defects and system obstacles in implementing ESO, which is the main source of making our ESO not standard.As we all know, a plan can successfully reach what we had expected only under the condition of perfect circumstance, so in the following segment, author puts forward howto perfect certain mechanism of ESO. They are establishing manager market, perfecting and regulating securities market, developing property right market, building and strengthening examination assessment system and so on.The last chapter is a core part and has more innovations. This part discusses in detail five questions: corresponding to the second chapter, firstly, introduces the main points design of our ESO. During the design of main points, author has deeply considered Chinese reality. Secondly, mainly talks about accounting methods design of ESO, in this part, author tentatively puts forward her proposition -Synthetical Value method based on fair value, which not only conforms to international practice but also fits with our economy development. The following three questions are put forward in order to decrease financial false cases. They are: Chinese interior supervision system design of ESO, Chinese information disclosure system design of ESO and Chinese prohibiting interior transaction design.