The Research On Executive Stock Option System

Executive stock option is considered as an effective incentive measure solving the principal-agent problem. ESO is that the operators can buy a certain number of stocks at pre-set price in the future. Basic theories of ESO include it's concept, characteristic, the theoretical basis, the legal nature and the system value. It is mainly characterized as payment attribute, period attribute and personal attribute. Theoretical foundation of ESO are human capital theory and principal-agent theory. As for the legal nature of ESO, I believe that we should analyze ESO contacted the actual operational process to obtain a conclusion that ESO in the different stages is of the different legal nature. System value of ESO are mainly embodied in the following four aspects: by combining the company's short-term pay system with long-term pay system organically, improve the company's pay system; help alleviate the moral hazard of agency, and strengthen vigor and vitality of company; help choose, attract and stabilize outstanding talent; be able to reflect the legal concepts of economic fair. Our country formed the five models in the course of implementing ESO, such as Shanghai model, Beijing model, Wuhan model, Jinan model and Shenyang model, the five models combined the conditions of local enterprises, each with its own characteristics, but it is not true ESO, the fundamental reason is that there are still some problems implementing ESO, such as the obstacles of stock sources, the irregular corporate government structure, the imperfect tax system, and the imperfect labor regulations, the unformed manager market, and ineffective securities market, only by overcoming these shortcomings, ESO system of China can be improved continuously. So we should take the following measures: implement eclectic authorized capital; improve the corporate governance structure; improve the tax system; improve labor regulations; establish and develop professional managers' market; establish a healthy, mature securities market; provide judicial relief. .