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Research On The Encouraging Scheme Of A Company's Stock Futures,Stock Options

Posted on:2005-12-21Degree:MasterType:Thesis
Country:ChinaCandidate:C L LiFull Text:PDF
GTID:2156360125469600Subject:Business Administration
Abstract/Summary:PDF Full Text Request
During the past few years, the stock-based employee compensation plans have been gradually used by some china's listed companies. They start to design and implement stock options, stock purchase plans, ESOPs etc. to motivate their employees, especially high-level managers and important technicians. The stock-based employee compensation plans can remarkably narrow the gap between employees' and companies' interests and reduce company's principal-agent cost. It's the most advantage of stock options and futures that it takes enterprise value as an important variable in function of manger income, and makes the interest of owner be consistent with that of manager as long-term encouraging and restraining mechanism. It is of special significance for reforming enterprise to carrying on stock options and futures in our country, and it is a better way to resolve mechanism for encouraging and restarting in enterprise.Since 1998, some enterprises researched actively stock options the scheme, but few enterprises can implement the scheme under the imperfect policy and legal environment. The regulation about state-run assets managed and supervised issue formally, The main content of regulation is to examine the central enterprise business performance. It indicate that the state-run assets committee begins to examine the achievement to the central enterprise's director in the capacity of contributor, According to this regulation, the enterprises can implement stock options, stock purchase plans of salary system. From discussing stock options mechanism for encouraging and restraining stage to performing stage till now. Under such background, the author introduces stock options scheme of A company that put forward plan several years ago, and improves the plan.The competitions of modem enterprises, the importance of the manpower capital is obvious . A limited Company develops Hi-Tech projects as the new growth point of profit, how to keep and attract valuable staff is the most key problem that the company will face. As A Company, after development of scale, existing mechanism of encouraging and restraining isn't adapted to developing of A company. How to set up mechanism for encouraging and restraining of A company's senior executive, and set up canonical stock options, it is of special significance for developing continuously of A Company in the future.For the above-mentioned problems, the author has carried on deep research to stock options that A Company existed incentive mechanisms. On this basis of studying, it analyses some reasons why this scheme was not implemented finally. The author pointed out the weakness of this scheme, and proposed improving the scheme. Hope that the new scheme was put forward of the paper can solve some problems that A Company existed. We can replace the great amount of cash remuneration with the new stock options scheme in order to attract, encourage, keep outstanding technician and senior executive, also we hope that they will share with shareholder in risks and profit. By means of stock options incentive mechanisms, it may restrict and encourage enterprise's operator, and contain the acts and efforts for expediency.
Keywords/Search Tags:Stock options, Stock futures, Employee stock owner plans, Mechanism for encouraging and restraining
PDF Full Text Request
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