The Research On Stock Option Encouragement Of QinChuan Development Joint-Stock Limited Company

The administration ability of manager is the most scarce resource of company. The manager is playing a more and more important role in company's development. Only when managers who actually control the company can enjoy the right of demanding surplus , it's possible for them to work hard for the company's long-term development. However, traditional main economics usually ignored research on this problem. In the aspect of encouraging managers, the existing research and practice mainly concentrate on spirit encouragement and short-term material encouragement ,so research into the problem of long-term material for manger, not only have very important actual meaning ,but also is beneficial to enrich and consummate entrepreneur theory.After analysis on the base of entrust-agent theory, this paper argues the system of stock option which is popular in western countries for over 50 years, can solve the problem of how a company's agent's encouragement can be compatible with their control to some large entert, and encourage managers to pay their attention from short-term financial index to the company's long-term development, thus it overcomes the shorten trend of managers' behavior under traditional salary system which is mainly basic wages, bonus and annual salary; in the light of the reproach stock option sustains and the puzzle which envelopes fellow countrymen after the appearance of some economic scandal of making fake ,such as the evaporation of IT foam ,the exposure of Wall street scandal, YinGuangxia, Zhongke pioneer etc, this paper points out:(l)when the leak of system is discovered, what needs to be done is to improve it, we should not drop the system for it is not perfect(2)the system ofstock option ,as the innovative impetus of high technology enterprise, still plays on important role which can't be instead of.(3)the low-stream and fluctuation of capital market can't shake the foundation of option value.(4)in the process of China's enterprise implementing stock option, it should absorb the America's experience. After review and analysis the history of stock option practice in China, this paper concludes stock option encouragement system should be implemented in QinChuan Development, and does some work practically as follows:(1)it analyzes and research of the feasibility of stock option's practice in china-the key of feasibility lies in the condition on which it can play role effectively-the effectiveness of securities market .(2)on this basis, it researches on the designment of QinChuan Development Company managers' stock option encouragement plan: organizes plan of stock option, analyzes and fixes the intensity of managers' stock option encouragement, emphasizes on assessing managers' achievement, pricing of stock option and the problem of awarding quantity ,sets up stock option compositive model.(3)formulates the managers' stock option plan of QinChuan Development Company and the rule of salary committee to organize and discuss official business.