An Study On Executive Stock Option Of The Listed Company

As an important incentive mechanism, Executive Stock Option (hereafter referred to as ESO) has got the extensive application in the western developed country. In recent years, it has been accepted by some listed companies in our country. We hope that it can successfully solve the incentive problem of our managers, which has not been solved in the past over 20 years reformation.A remarkable characteristic of modern enterprises is that the ownership separates from power of management, therefore has produced trust-agent contradictory, in order to weaken this contradiction, business circles and theory circle are exploring and practicing constantly. ESO system is undoubtedly a kind of very good system innovation which weakens this contradiction. ESO is a right afforded by the owner of the enterprise to the managers to purchase the enterprises stock in the future, according to the agreed price. It solve the contradiction that the rights of surplus-claiming and surplus-controlling don not match the capital ownership to a certain extent, therefore it makes the benefit between managers and owners unanimous inherently as much as possible. However, owing to the unsoundness of our market economic system, putting ESO in practice at present will suffer from many drawbacks, which no matter in laws and regulations, market system or company's administration structure, a lot of people also suspect about necessity and feasibility that the listed company of our country implement ESO, how to dispel these doubt and solve these drawbacks effectively is a key problem whether ESO will bring practical effect or not in China. Therefore, the research in this paper will has the realistic meaning for theory circles to probe ESO system, for enterprise circles to put ESO in practice and for governmentsto superintend and restrict ESO system normally.The paper uses the way of practical and standard analysis, on the thinking of the writing, proceed from summary of ESO, has analysed the necessity and feasibility that ESO system implements in our country emphatically, provide standardize the design plan of key-element in ESO system of suiting our country's national conditions finally.The most important innovation of this paper lies in , through explaining from two following angles ESO is the effective way which can fully release entrepreneur's ability, improve the enterprise's benefit , first , the angle of the J.A.Schampeter's innovative theory and the Coase theorem; Second, in terms of game theory, and then draw the conclusion of the necessity that ESO should be implemented in the listed company of our country. Another innovation lies in , in our country's present actual conditions, have proposed the design plans of ESO key-element of suiting our country's national conditions, offer effectual guidance for the listed company of our country implementing ESO as much as possible.This paper thinks: Though the ESO has met a great deal of obstacles in practice of our country, but with the constant soundness of our legislation and policy, the increasing maturity of our capital market, the constant perfection of company's administration structure, in addition what we know to the ESO is deepened constantly, and then design scientifically, operate normally the ESO, we believe that ESO system will bring far-reaching impact on our company's administration, enterprise reform and long-term incentive for the managers.