Research On Executive Stock Option Incentive Mechanism And Application

Executive stock option, based on the innovation of stock option contract, has been used extensively as a kind of salary system to encourage the business managers. Executive stock option is regarded as linking the manager's salary with the long-term value of the enterprise, thus successfully solving the operator's long-term stimulation problem, making the operator's interests in accordance with the long-term interests of enterprise, in this way it has enjoyed great popularities among enterprise and operators. But in practice, many problems of executive stock option have showed up and it has caused many disputes. Therefore, incentive mechanism and the application problems of stock option are studied in this dissertation, and this paper also analyzed the principle of its incentive functions, discussed the problems and solutions of the executive stock option in practice.The dissertation firstly analyzed the incentive principle of executive stock option, pointed out that its essence is one kind of rising option based on company assets; it is a partition of the newly-increased interests of enterprise. To the operators, the executive stock option enables its earnings to become a rising function of its efforts, helping the operators realizing the human capital value; to the owners, the executive stock option enables the operators to get the claim right of the enterprises, thus realizing the effective stimulation to the operators. Executive stock option can remedy the deficiency of the traditional salaries ways on the aspect of long-term stimulation. it has obvious comparative advantages.The dissertation has analyzed the function of executive stock option by game theory, drew that executive stock option can raise manager's opportunity cost of the moral risk and enhance the encouragement degree to the operator. Using stock pricing model, the dissertation has analyzed that the relevant factor is to executive stock options worth and then to encouraging the function and encourage the influence of efficiency, Offer reference for the design and application of executive stock option. The dissertation analyses the system environment for implementing the executive stock option, and analyses the technical design of manager's stock option plan from four links of authorizing, authorized, exercise and handle. At last, this dissertation probed into the situation of implementing manager's stock option in our country, analyzed the typical mode and characteristic of executive stock option in our country, and pointed out the obstacles existing in the implementation of manager's stock option, finally put forward the policy and suggestion on its perfection and development...